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Lithia Motors Forms Internet Division - Lithia.com

1 April 1999

Lithia Motors Forms Internet Division - Lithia.com - 'America's Car and Truck Store On The Internet'
    MEDFORD, Ore., April 1 -- Lithia Motors, Inc. ,
the leading publicly-traded auto retailer on the West Coast with over
$1.2 billion in annualized revenues, today announced that it will form an
operating division named "Lithia.com -- America's Car and Truck Store on the
Internet."
    Sidney B. DeBoer, Chairman and Chief Executive Officer of Lithia Motors,
Inc., stated, "With 77 new vehicle franchises for 24 makes of new vehicles in
5 Western and Inter-Mountain states, Lithia is best positioned to take
advantage of the Internet.  We will be able to deliver any make of new or used
vehicle to any customer at any location in these regions and beyond as we
expand across America.  We have the infra-structure and people in place to be
the leading Internet provider of new and used vehicles within our regions.
Lithia plans on capitalizing on the fact that new vehicles can only be sold by
franchised auto stores according to most state laws.  Lithia is effectively
planning to eliminate the need for "go-betweens" on the Internet, such as
Autobytel.com and Autoweb.com or other lead
generator services.  Lithia will capture more and more of the growing Internet
business with Lithia.com."
    Lithia has developed a web-site for each of its stores and now provides
the following functions at the "one-stop" location, http://www.lithia.com:  1) New
Vehicle Ordering; 2) Hot-Links to Manufacturer Web-Sites for New Vehicle
Product Information; 3) Used Vehicle Inventory Lists; 4) Service Appointment
Scheduling; 5) Parts and Accessory Ordering; 6) Internet Specials and Coupons;
7) Maps and Photos of Each Dealership; 8) Photos of Department Managers; 9)
Employment Information; and 10) Investor Information.  Lithia has already been
advertising in its existing local markets under the "lithia.com" name and has
established its own Internet presence in these markets.  The Internet division
will expand the marketing of "Lithia.com," monitor and control the Internet
sales process, and continue to improve the web-sites.
    Including pending acquisitions, Lithia will operate 35 stores located in
California, Oregon, Washington, Nevada and Colorado.  The company will sell 24
brands of new vehicles through 77 franchises.  Lithia also sells used
vehicles, arranges finance, warranty, and credit insurance contracts, provides
vehicle parts, maintenance, and repair services at all of its locations.  The
company will operate 6 collision repair centers.  Lithia's annual revenue
run-rate is now over $1.2 billion, including pending acquisitions.  Other
companies experiencing growth through regional and/or national automotive
consolidation strategies are: Sonic Automotive , Group 1 Automotive
, Republic Industries , and United Auto Group
.
    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, e-commerce risk factors and
others set forth from time to time in the company's filing with the SEC.
    For additional information contact: Jeff DeBoer, VP -- Finance/Investor
Relations (541) 776-6868.