Lithia Motors Inc. Increases Quarterly Dividend 17% to $0.14 Per Share for the Second Quarter of 2006

MEDFORD, Ore.--July 10, 2006--Lithia Motors, Inc. today announced that the Board of Directors has approved a 17% increase in Lithia's quarterly dividend from $0.12 to $0.14 per share for the second quarter of 2006. Shareholders of record as of July 21, 2006 will receive the dividend that will be payable August 4, 2006.

About Lithia

Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company with operations in 38 markets, located in 13 states, selling 25 brands of new vehicles through 96 stores and over the Internet at "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 103,333 new and used vehicles and had $2.9 billion in total revenue in 2005.

Additional Information

For additional information on Lithia Motors, contact the Investor Relations Department: 541-776-6591 or log-on to: www.lithia.com - go to Investor Relations.