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Lithia Motors Completes Acquisitions of Four New Stores in California and Nevada

7 October 1997

Lithia Motors Completes Acquisitions of Four New Stores in California and Nevada

    MEDFORD, Ore., Oct. 7 -- Lithia Motors, Inc.
completed its previously announced acquisitions of Bakersfield Nissan and
Bakersfield BMW and Acura in Bakersfield, California and began operating as of
early October as Lithia Nissan and Lithia.  BMW and Acura of Bakersfield.
Separately, Lithia, completed its previously announced acquisitions of
Donnelly Automotive in Reno and Sparks, Nevada and began operating as of early
October as Donnelly Automotive, a Lithia Company.  Approval from Nissan,
Acura, BMW, Isuzu, Lincoln/Mercury, Suzuki and Audi was granted and all
personnel and asset transfers were completed smoothly for all four locations.
    The acquisitions will be accounted for as purchases and are the company's
sixth and seventh since the IPO.  Lithia now operates fifteen stores, with
seven in California, six in Oregon and two in Nevada.
    Sidney B. DeBoer, Chairman and CEO, stated, "These acquisitions represent
our entry into two new markets which fit our disciplined acquisition strategy.
We feel that Dick Donnelly is a superb addition to our management team and are
pleased that he has agreed to continue to operate the Nevada stores.  Most
importantly, we acquired franchises of four new manufacturers in Nissan,
Acura, BMW and Audi and are very excited about building on these new
relationships.  Lithia now represents 21 of the 30 brands available from auto
manufacturers in the United States, Japan and Germany."
    Mr. DeBoer also stated that Lithia is currently in discussions with
several potential acquisition candidates in its target markets and will be
announcing future acquisitions as they are finalized.
    This press release includes forward looking statements, which management
believes is 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,
acquisition risk factors and others set forth from time to time in the
company's filings with the SEC.

SOURCE  Lithia Motors Inc.