Lithia Motors and Carfax Announce New Deal

MEDFORD, Ore.--Feb. 6, 2006--Lithia Motors, Inc. today announced the selection of Carfax as their preferred provider of vehicle history reports. Starting today, all vehicles appraised and sold at Lithia Motors stores across the country will have a detailed Carfax Vehicle History Report.

"By teaming up with Carfax, we are now able to better provide one of the critical pieces of information that a buyer wants when making a used vehicle purchase. Consumers shopping at any one of our 96 stores can now buy with even greater confidence," said Lithia Motors Chairman and CEO Sid DeBoer. "Lithia's operating practices and standards are designed to maximize the customer experience by providing more information while speeding up the buying process. This is an important step towards achieving that goal. Every one of our retail units will now be backed by two of the most trusted names in the used car business - Lithia and Carfax."

Carfax Vehicle History Reports will be available wherever Lithia Motors sells cars - On their lots and on the Internet. Cars for sale on the Internet will include links to Carfax Reports that consumers can access free with the click of the mouse.

"We're working hard with our dealer customers to help them maximize the effectiveness of the Carfax Vehicle History Reports," said Carfax President Dick Raines. "Providing detailed information about a vehicle's past and mechanical inspections is helping dealers across the country build consumer confidence."

About Lithia Motors

Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company that sells 25 brands of new vehicles and operates 96 stores and 186 franchises in 12 states in the Western United States and over the Internet through "Lithia.com-America's Car & Truck Store." Lithia also sells used vehicles; arranges finance, warranty, and credit insurance contracts; and provides vehicle parts, maintenance, and repair services at all of its locations. Lithia retailed 98,331 new and used vehicles and had $2.7 billion in total revenue in 2004.

About Carfax

Founded in 1986, Carfax pioneered the concept of the vehicle history report. Carfax Vehicle History Reports, the most comprehensive collection of used vehicle information ever assembled, can confirm a clean title history or help purchasers identify previous salvage history, odometer fraud, flood damage and more. Carfax, Inc., based in Fairfax, Virginia, is a wholly owned subsidiary of the R.L. Polk & Co.