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Lithia Motors Completes Acquisition of Roundtree of Idaho in Boise, Idaho

14 December 1999

Lithia Motors Completes Acquisition of Roundtree of Idaho in Boise, Idaho LITHIA AUTOMOTIVE GROUP LOGO Lithia Automotive Group logo. Contact: Betty Whitney, 541-776-6591. (PRNewsFoto)[DM] MEDFORD, OR USA 09/09/1999    

    MEDFORD, Ore., Dec. 13 -- Lithia Motors, Inc.
announced that it has completed the acquisition of Roundtree of Idaho in
Boise, Idaho.  The group consists of two stores with the Chevrolet,
Lincoln/Mercury and Isuzu brands.  The stores have estimated 1999 sales of
$101 million and began operation under Lithia's ownership on
December 13, 1999.  Lithia's net investment in the stores totaled
approximately $8.5 million and was paid for in a combination of stock and
cash.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990909/LITHIALOGO )
    Sidney B. DeBoer, Chairman and CEO of Lithia Motors, stated, "These stores
are strategically located in a highly attractive new market within our
targeted regions in the western and inter-mountain states.   This acquisition
represents a continuation of our primary strategy to buy dominant franchises
in attractive middle-sized markets.  We continue to look for more of this type
of acquisitions, including more stores in and around the Boise market, due to
our potential to improve the operations by implementing the Lithia operating
model and to earn a superior return on invested capital."
    Separately, Lithia announced that it completed an exchange of franchises
in Roseburg, Oregon with another local dealer.  Lithia exchanged its
GMC/Oldsmobile and Toyota franchises for Chrysler/Plymouth and Jeep and an
additional cash consideration paid to Lithia.  This exchange completed the
proper alignment of brands in this market for General Motors and
Daimler-Chrysler.
    With this most recent acquisition, Lithia now operates 98 franchises in
California, Oregon, Washington, Nevada, Colorado, and Idaho and sells
24 brands of new vehicles at 41 stores and over the internet through
"Lithia.com-America's Car & Truck Store."  Lithia also sells used vehicles;
arranges finance, warranty, and credit insurance contracts; and provides
vehicle parts, maintenance, and repair services at all of its locations.
Lithia retailed 31,353 new and used vehicles in 1998.  Lithia's current
annualized revenue run rate, including all completed acquisitions, is over
$1.4 billion or approximately 63,500 retail new and used units.
    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 and others set forth from time to time in the
company's filings with the SEC.  Specific risks included in this press release
include future acquisitions, operational improvements, return on investment,
revenue run rate and unit sales run rate.
    For additional information on Lithia Motors, contact:  Jeff DeBoer, Vice
President of Finance/Investor Relations, 541-776-6868 or log-on to
http://www.lithia.com (E-mail: invest@lithia.com)