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Lithia Motors, Inc. Sells 3.0 Million Shares in Public Offering

1 May 1998

Lithia Motors, Inc. Sells 3.0 Million Shares in Public Offering

    MEDFORD, Ore., May 1 -- Lithia Motors, Inc.
announced today the sale of 3.0 million newly issued shares of
its Class A Common Stock in a public offering at a price of $14.50 per share.
The Class A Common Stock is traded on the Nasdaq National Market under the
symbol "LMTR."  Lithia Motors is a leading retailer of new and used vehicles
in the western United States, offering 21 domestic and imported makes of new
automobiles and light trucks at 22 locations in California, Oregon and Nevada.
The Company, based in Medford, Oregon, is a leading acquirer of automotive
dealerships in medium-sized markets in the western United States.
    The proceeds of the offering will be used primarily to acquire additional
automotive dealerships and for general corporate purposes.
    This offering is being made through a syndicate of underwriters co-managed
by Furman Selz LLC, Dain Rauscher Wessels, a division of Dain Rauscher
Incorporated, EVEREN Securities, Inc. and BancAmerica Robertson Stephens.
Copies of the prospectus relating to the offering may be obtained from Furman
Selz LLC, 230 Park Avenue, New York, New York 10169.  The offering is
scheduled to close on May 6, 1998.

SOURCE  Lithia Motors Inc.