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Lithia Motors, Inc. Secures $175 Million Credit Facility Commitment From U.S. Bank

5 September 1997

Lithia Motors, Inc. Secures $175 Million Credit Facility Commitment From U.S. Bank

    MEDFORD, Ore., Sept. 5 -- Lithia Motors, Inc.
announced today that it has signed an agreement with U.S. Bank for
$175 million in credit lines, including $110 million in new, used and program
flooring lines, $30 million in acquisition capital and $35 million for other
corporate purposes.  The total commitment was extended solely by U.S. Bank on
a "full commitment" basis, but a portion of the facility may be shared with
other banks on a syndicate basis in the coming months.
    Sidney B. DeBoer, Chairman and CEO, stated, "We are most pleased today to
announce that U.S. Bank, which has been our main bank for as long as memory
serves, has approved of a new comprehensive credit facility to fund our growth
through late 1998.  This level of commitment will be sufficient to fund out
planned acquisitions for this year and the next.  Should the core operational
side of our business allow, we now have the financial means to potentially
double our revenue base again in 1998 from this year's pace of more than
doubling 1996 revenue.  We are very excited to be able to deepen our
relationship and grow along with U.S. Bank in the years to come and thank them
for their vote of confidence in our future."
    U.S. Bank recently merged with First Bank Systems of Minneapolis, bringing
its operational territory to 17 states, including all of Lithia's target
states in the Western and Inter-Mountain regions.  U.S. Bank is now the
fourteenth largest bank in the nation.
    Michael F. Luiten, Senior Vice President of Dealer Financial Services of
U.S. Bank, commented, "Over the years, Lithia's management team has proven its
ability to operate automobile retail stores in excess of the industry
standards and we are excited about expanding our relationship by funding
Lithia's future growth."
    This press release includes forward looking statements, which management
believes are a benefit to shareholders.  These statements are necessarily
subject to risk and uncertainty and actual results could differ materially due
to certain risk factors, including without limitation economic conditions,
acquisitions risk factors and others set forth from time to time in the
company's filings with the SEC.

SOURCE  Lithia Motors Inc.