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Lithia Motors, Inc. Acquires Third and Fourth Dealerships in Fresno, California

22 January 1998

Lithia Motors, Inc. Acquires Third and Fourth Dealerships in Fresno, California

    MEDFORD, Ore., Jan. 22 -- Lithia Motors, Inc.
announced today that it completed the acquisition of Quality Nissan and
Quality Jeep/Eagle Hyundai in Fresno, California and began operation as Lithia
Nissan of Fresno and Lithia Jeep/Eagle Hyundai of Fresno as of
January 20, 1998.
    The dealerships had estimated combined sales of $40 million for 1997 and
Lithia's total investment in the stores totals $4.4 million.  The acquisitions
will be accounted for as purchases and are the company's 13th and 14th since
going public in December 1996, bringing the total locations under operation to
19, with 11 in California, six in Oregon and two in Nevada.  Lithia sells
22 brands of domestic and imported vehicles through 47 different franchises.
    Sidney B. DeBoer, Chairman and CEO, stated, "These acquisitions are our
fifth and sixth in California's South Central Valley market area, which
includes Bakersfield.  Combined with last month's acquisition of two stores in
Fresno, economies of scale will be realized with these acquisitions and will
be realized even further as we acquire additional stores in this market area.
In addition, the demographics of Fresno fit perfectly with our acquisition and
operating strategies.  We are very excited about taking on our second Nissan
store.  The Jeep/Eagle Hyundai store is the exclusive outlet for these brands
in the entire Fresno market.  These acquisitions should give investors even
greater confidence in our ability to achieve the very aggressive 36% growth in
1998 earnings per share that the analysts are currently forecasting for our
company."
    Separately, Lithia announced that its Medford and Grants Pass Chrysler
product stores in Southern Oregon have achieved Chrysler's highest recognition
for dealer excellence, the Five-Star Award.  The Medford store was the first
to receive this certification in the Pacific Northwest.  This certification is
awarded only to a select group of dealers who have the processes and people in
place to deliver the best buying and service experiences to customers, along
with the most satisfied employees.
    Lithia will be announcing its financial results for fiscal 1997 and the
fourth quarter at the end of February.  Preliminary fourth quarter results
appear to be in line with the current analyst estimates.
    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,
acquisition risk factors and others set forth from time to time in the
company's filings with the SEC.

SOURCE  Lithia Motors, Inc.