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Lithia Motors Completes Ford Credit Agreement and Acquisitions

25 November 1998

Lithia Motors Completes Ford Credit Agreement and Eugene, Oregon Acquisitions

    MEDFORD, Ore., Nov. 25 -- Lithia Motors, Inc.
today announced that the previously announced agreement with Ford Credit was
signed and funded on November 24, 1998.  The new credit facility of
$350 million, which includes a $75 million acquisition line, replaces a bank
syndication.  In addition to the Ford Credit facility, Chrysler Financial,
Toyota Motor Credit and GMAC are providing the wholesale flooring financing
for their respective new vehicles.
    Separately, Lithia announced that it completed the previously announced
acquisitions of the Hutchins Toyota and Hutchins Nissan dealerships in
Eugene-Springfield, Oregon earlier in November.  The stores operate as
Lithia Toyota of Springfield and Lithia Nissan of Eugene.
    Additionally, the November 30 issue of Forbes Magazine carries a two-page
article on page 134-5 in the "Entrepreneur" section entitled, "Road Warrior:
What Wal-Mart Did in Department Stores, Lithia Motors is Doing in Car
Dealerships."