---

Lithia Motors Announces Acquisition in Tri-Cities, Washington

16 November 2000

Lithia Motors Announces Acquisition in Tri-Cities, Washington

     Ford Dealership Is the Third Store for Lithia in This Growing Market

    MEDFORD, Ore., Nov. 16 Lithia Motors, Inc.
announced today that it has completed the acquisition of Columbia Center Ford
in Tri-Cities, Washington.  In October of last year Lithia completed the
acquisition of a Dodge store, and in May of this year Lithia acquired a Honda
store in the same market area.  The Ford store has estimated 1999 sales of
$32 million.  Lithia's net investment in the store totals approximately
$3.6 million and was paid for in cash.
    Sidney B. DeBoer, Chairman and CEO of Lithia Motors, stated, "Lithia now
has three major brands, Ford, Dodge and Honda in the Tri-Cities area.  The
sequential acquisition of all three stores provides a good example of how
Lithia likes to build platform groups within dynamic and growing markets."
    With this most recent acquisition, Lithia now operates 107 franchises in
California, Oregon, Washington, Nevada, Colorado, Idaho and South Dakota.
Lithia sells 26 brands of new vehicles at 50 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 52,485 new and used vehicles in 1999, and
33,466 new and used vehicles in the first half of 2000.  Lithia's current
annualized revenue run rate, including all completed acquisitions, is over
$1.7 billion.