Lithia Motors Acquires Automotive Group in Grand Forks

MEDFORD, Ore.--Lithia Motors, Inc. the country’s eighth-largest automotive dealership group, today announced its acquisition of stores in Grand Forks, North Dakota. The acquisition is a combination of both domestic and import brands with annualized revenues of approximately $85 million. Lithia has now completed the acquisition of seven stores with approximately $255 million in annualized revenues in 2006.

Lithia’s Chairman and CEO, Sid DeBoer, commented, “This is Lithia’s first acquisition in the state of North Dakota. We now have operations in 14 states and with this acquisition we have eight stores located in successful Midwestern markets. We purchased one store earlier this year in La Crosse, Wisconsin; we have two stores in Sioux Falls, South Dakota; three stores in Omaha, Nebraska; and now these stores in Grand Forks, North Dakota. These are the types of communities where Lithia’s focus on value, customer service, and community involvement lead to successful operations.”

About Lithia

Lithia Motors, Inc. is a Fortune 700 and Russell 2000 Company. Lithia sells 25 brands of new vehicles at 98 stores which are located in 40 markets within 14 states. Internet sales are centralized at www.Lithia.com. 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

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