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BancAmerica Robertson Stephens Initiates Coverage on Lithia Motors

11 November 1997

BancAmerica Robertson Stephens Initiates Coverage on Lithia Motors

    SAN FRANCISCO, Nov. 11 -- BancAmerica Robertson Stephens
research analyst Jordan Hymowitz initiated coverage today on Lithia Motors,
Inc. with a Long Term Attractive rating.  Hymowitz estimates
the company should earn $0.80 per share in FY97, and $1.05 per share in FY98.
His one-year price target is $21 per share.
    "We believe the company's operating strategy and growth prospects are
superior to the industry average," Hymowitz said.  Lithia acquires average or
slightly below average performing stores (not turnarounds) for low multiples
(2-4x pretax) and significantly improves their operating performance.
    Lithia Motors, Inc. based in Medford, Oregon sells and services 21 brands
of new and used vehicles from 15 dealerships in Oregon, California, and Nevada
and is the nation's 66th largest auto retailer.  Since going public in
December 1996 it has acquired $260 million in dealership revenue, almost
doubling its size to nearly a $350 million third quarter annualized revenue
run-rate in 1997, Lithia Motors is the only publicly traded dealership to meet
or exceed consensus earnings estimates every quarter, its stock has
appreciated more than 70% since January.
    BancAmerica Robertson Stephens is a leading international investment
banking firm, focused on emerging growth companies.  The firm's 45 research
analysts cover over 500 companies.

    The information contained herein is not a complete analysis of every
material fact respecting any company, industry or security.  Although opinions
and estimates expressed herein reflect the current judgment of the Firm, the
information upon which such opinions and estimates are based is not
necessarily updated on a regular basis; when they are, the date of the change
in estimate will be noted.  In addition, opinions and estimates are subject to
change without notice.  This Report contains forward-looking statements which
involve risks and uncertainties.  The Company's actual results may differ
significantly from the results described in the forward-looking statements.
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