---

Lithia Motors, Inc. To Acquire Camp Automotive, Inc.

27 August 1998

Lithia Motors, Inc. To Acquire Camp Automotive, Inc. In Spokane, Washington

    MEDFORD, Ore., Aug. 27 -- Lithia Motors, Inc.
announced today the acquisition of Camp Automotive, Inc.
located in Spokane, Washington.  The two-store group had sales of $88 million
in 1997 and holds the franchises for Chevrolet, BMW, Subaru and Volvo.  The
dealerships are being managed by Lithia Motors until the completion of the
transaction which is scheduled for early in the fourth quarter of 1998.  When
the acquisition is completed, Lithia Motor's 1997 proforma annualized sales
including previously completed and announced 1998 acquisitions will be
approximately $820 million.  Lithia had sales of $320 million in 1997.
    Lithia's investment in the stores will total approximately $10.8 million.
The acquisitions will be accounted for as purchases and represent the
twenty-second and twenty-third for Lithia since completing its public offering
in 1996.  With the completion of the acquisition, Lithia will operate 28
dealerships -- fourteen in California, nine in Oregon, three in Nevada and two
in Washington.  Lithia offers 25 brands of domestic and imported vehicles.
    Sidney B. DeBoer, Chairman and CEO, stated, "We are very pleased to see
the Camp organization become part of the Lithia Group.  The Camp dealerships
are very successful operations with superb reputations.  We are also very
excited to see Mr. Phil Camp remain at the head of the Camp organization."  He
also stated, "The addition of the Spokane, Washington market further
demonstrates our ability and commitment to acquiring dealerships in
medium-sized markets in the western United States.  It is Lithia's
well-defined and disciplined acquisition strategy combined with our strong
operating model that is the key to our continuing growth and success."
    Mr. Camp stated, "My associates and I are looking forward to being part of
the Lithia team.  The business philosophies are so similar that the transition
should occur smoothly and unnoticed by our customers."
    Phil Camp graduated with honors in 1964 from Washington State University
with a degree in engineering.  He has been with the Camp organization for 33
years, becoming General Manager in 1973 and President in 1991.  During this
time, the Camp dealerships have won many sales, service and customer
satisfaction awards from manufacturers.  Concurrently, Mr. Camp has
volunteered much in time and resources in assisting numerous civic and
charitable organizations.
    Separately, the Company announced the promotion of Mr. Don Jones, Jr. to
Vice President, Dealership Operations effective July 1, 1998.  His duties
include the management of dealership operations throughout the Lithia
organization and the implementation of Lithia's operating systems on
acquisitions.  Previously, Mr. Jones was the Area Manager for Northern
California and the Chrysler dealerships in Oregon.  He has been with Lithia
for nine years.
    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.