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Lithia Motors Sees 120% Higher Q3 Revenue

18 September 1998

Lithia Motors Sees 120% Higher Third Quarter Revenue and EPS in Excess of Wall Street Estimates

    MEDFORD, Ore., Sept. 18 -- Lithia Motors, Inc.
Chairman & CEO Sidney B. DeBoer said that he sees third quarter revenue rising
an estimated 120% from the $85.6 million posted in the third quarter of 1997.
    DeBoer also said he expects Lithia to exceed Wall Street's earning
estimates for the current third quarter which ends on September 30, 1998.
According to the average estimate of analysts polled by First Call Corp., the
company is expected to earn 32 cents a diluted share or 45% more than the
22 cents posted in the third quarter of 1997.
    Lithia is the leading publicly-owned automotive retailer in the western
United States.  With the completion of pending acquisitions, the company will
operate 28 dealerships in California (14), Oregon (9), Nevada (3) and
Washington (2), selling 23 brands of new vehicles through 56 franchises in
12 different cities.  Lithia also sells used vehicles, arranges finance,
warranty and credit insurance contracts, and provides vehicle maintenance and
repair services at all of its locations.  Since becoming a public company in
December 1996, Lithia has acquired 23 stores with annual revenues of
approximately $680 million, boosting its annual revenue run rate to over
$820 million.  Lithia had sales of $320 million in 1997.  Its headquarters are
in Medford, Oregon, and the site of Lithia's original group of dealerships.
    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.