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Lithia Motors, Inc. Announces Public Stock Offering

9 March 1998

Lithia Motors, Inc. Announces Public Stock Offering

    MEDFORD, Ore., March 9 -- Lithia Motors, Inc. announced that
it has filed a registration statement with the Securities and Exchange
Commission for a public offering of 3,000,000 newly issued shares of its Class
A Common Stock.  The offering is being made through a syndicate of
underwriters co-managed by Furman Selz LLC, Dain Rauscher Incorporated and
EVEREN Securities, Inc.  Proceeds of the Offering will be used to fund the
acquisition of additional automobile dealerships and for general corporate
purposes.  Prior to such use, the funds will be used to reduce borrowing under
the Company's lines of credit.
    Lithia Motors is a leading automotive retailer offering a total of
21 brands in 21 locations in the western United States.  The Company currently
operates 11 dealerships in California, 7 in Oregon and 3 in Nevada.
    A registration statement relating to these securities has been filed with
the Securities and Exchange Commission but has not yet become effective.  The
securities may not be sold nor may offers to buy be accepted prior to the time
the registration statement becomes effective.  This press release shall not
constitute an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.
    The Company expects to file its Form 10-K with the Securities and Exchange
Commission within the next week.  A copy of the preliminary prospectus
relating to the Common Stock, expected to be available in mid-March, may be
obtained from Furman Selz LLC, 230 Park Avenue, New York, New York 10169.

SOURCE  Lithia Motors Inc.