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Lithia Motors, Inc. Enters Into Agreement With Ford Credit

13 October 1998

Lithia Motors, Inc. Enters Into Agreement With Ford Credit for a $350 Million Credit Facility

    MEDFORD, Ore., Oct. 13 -- Lithia Motors, Inc.
announced today that it has entered into a strategic financial agreement with
Ford Credit to serve as its primary lender, providing $350 million in credit
lines, including $275 million in new, program and used vehicle flooring lines
and $75 million for acquisitions.
    Lithia Motors Chairman and Chief Executive Officer, Sidney B. DeBoer, said
that the partnership is one that complements Lithia's business plan.
Mr. DeBoer stated, "We are looking forward to our association with Ford Credit
and the reputation it brings as one of the world's largest and best finance
companies."
    In addition, Mr. DeBoer said, "This financing will further secure our
ability to continue our growth, especially when it is combined with our
successful secondary equity offering completed in the second quarter of this
year. The new acquisition line of credit is a substantial increase over the
current $30 million acquisition facility."
    "We are extremely pleased and proud to become a strategic financial
partner with Lithia Motors, Inc.," said Ford Credit North America President,
Greg Smith.
    Lithia Motors currently operates 28 automobile dealerships in four states
in the western United States, including nine affiliated with Ford. Lithia's
annual revenue run-rate is currently over $820 million, including pending
acquisitions. The company headquarters is in Medford, Oregon.
    Ford Credit is the world's largest company dedicated to automotive
financing, serving over eight million customers and over 11 thousand dealers
in 36 countries.
    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, manufacturer approval, and others set forth from
time to time in the company's filings with the SEC.