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Lithia Motors Attracts Ten Research Analysts Since Its IPO

16 April 1999

Lithia Motors Attracts Ten Research Analysts Since Its IPO

    MEDFORD, Ore., April 15 -- Lithia Motors, Inc. ,
today announced that it has attracted ten leading research analysts to cover
its stock and to publish research reports on the company since its IPO in
December 1996.  Lithia is the leading publicly-traded auto retailer on the
West Coast with over $1.2 billion in annualized revenues and recently
announced the formation of an internet operating division known as "Lithia.com
-- America's Car & Truck Store."
    In response to investors without access to broker research or the First
Call estimate service, the following summarizes the research coverage Lithia
has attracted:

    Broker                       Investment Rating    12-18 Month Price Target
    ABN AMRO                     BUY                          $26
    BancBoston
     Robertson Stephens*         BUY                          $28
    Bear Stearns                 BUY                          $31
    Dain Rauscher Wessels*       STRONG BUY                   $25
    EVEREN Securities*           OUTPERFORMER                 $32
    First Union Capital Markets  BUY                          $32
    Friedman Billings Ramsey     STRONG BUY                   $32
    ING Barings Furman Selz*     STRONG BUY                   $28
    Pacific Crest Securities     STRONG BUY                   $27
    USBancorp Piper Jaffray      STRONG BUY                   $32
    *Represents brokers which have underwritten recent equity offerings for
     the Company

    For the most part, these ratings represent the highest investment ratings
available from the respective brokerage firms.  The average analyst price
target is $29.  Lithia closed trading at $18.00 on April 14, 1999.  According
to First Call, Lithia has more analysts with published estimates for the first
quarter of 1999 than any other company in the automobile retailing sector.
The company attributes this to its position as the premier operator among
public companies in the industry with an operating margin of 3.7% in 1998 and
an unparalleled track record of meeting or exceeding analyst estimates for
each of the nine quarters it has reported since becoming a public company.
    The company's recently filed Form 10-K reported improved operating margins
from 3.0% in 1996, at the time of the IPO, to 3.7% at the end of 1998, and an
increase in revenues of more than five-fold.  During 1998, Lithia improved
sales at its first ten acquisitions by 22% and pre-tax profits by 44% and
achieved a return on invested capital well in excess of its cost of capital by
implementing its proven operating model.
    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.