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Lithia Enters Strategic Internet Agreement With Four Leading Firms

8 November 1999

Lithia Motors Enters Strategic Internet Agreement With Four Leading Firms for Next Generation of "Lithia.com" LITHIA AUTOMOTIVE GROUP LOGO Lithia Automotive Group logo. Contact: Betty Whitney, 541-776-6591. (PRNewsFoto)[DM] MEDFORD, OR USA 09/09/1999     
    MEDFORD, Ore., Nov. 8 -- Lithia Motors, Inc.
announced today that it has entered into a strategic agreement with Navidec
Inc. to develop and maintain its next generation of "Lithia.com
-- America's Car & Truck Store."  The agreement also includes the
participation of Ford Motor Credit for on-line vehicle financing, Automatic
Data Processing for new and used inventory and service history
data and Chrome Data Corporation for vehicle research and pricing information.
The strategy is to develop "360 degree marketing" that puts the consumer at
the center of the process. The process involves a seamless integration of the
brick and mortar and e-commerce that allows the consumer to research and buy a
vehicle anytime and anywhere. The current version of "Lithia.com," which is a
second generation site established in the summer of 1998, will continue to
function until the new site is launched in the year 2000.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990909/LITHIALOGO )
    Lithia Motors is one of the largest auto retailers in the United States
with over $1.3 billion in annualized revenue run-rate. Lithia believes the
following points are essential to understanding the Internet and auto
retailing:

    1) Large auto retailers, like Lithia, with an established distribution
infrastructure, are the best positioned to take advantage of this new sales
channel;
    2) Brick-and-mortar stores are a significant advantage because of the
important role they play in the sales and ownership experience of new and used
vehicles;
    3) Only franchised auto retail stores can sell new vehicles directly to
the consumers. Lithia now owns 94 franchises in California, Oregon,
Washington, Nevada and Colorado. The company sells 24 brands of new vehicles
over the internet. Strong state franchise laws that favor franchised auto
retailers are a significant barrier to entry and are being further
strengthened in numerous states across the country;
    4) As a franchised dealer, Lithia benefits from strong existing brand
loyalty with Ford, Dodge, Jeep, Chevrolet, Toyota, Honda and 18 other brands
coupled with the Lithia brand in its local markets;
    5) The Web expands Lithia stores' sales opportunities allowing Lithia to
take market share from competitors.

    Navidec Inc. is a leading provider and incubator of innovative e-business
solutions and services. Using its proprietary NPACT process, Navidec defines,
builds, and manages Internet, intranet and extranet solutions that enable its
clients to transform their traditional business into e-business.
    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,
manufacturer approval, e-commerce risks and others set forth from time to time
in the company's filing with the SEC.

    CONTACT:  Jeff DeBoer, VP - Finance/Investor Relations of Lithia Motors,
Inc., 541-776-6868, or invest@lithia.com.