Lithia Motors, Inc.
Ticker:LITH 360 E. Jackson Street
Exchange:NASDAQ-National Market Medford, Oregon 97501
Industry:Retail (541) 776-6899

Type of Shares:Class A Common Shares Filing Date:10/16/96
U.S. Shares:2,500,000 Offer Date:12/18/96
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:2,500,000 Offer Price:$11.00
Secondary Shares:0 Gross Spread:$0.77
Offering Amount: $35,000,000 Selling:$0.45
Expenses: - Reallowance:$0.10
Shares Out After: -

ManagerTierPhone
Furman Selz IncorporatedLead Manager (212) 309-8200
Dain Bosworth IncorporatedCo-manager (612) 371-2711
Everen Securities, Inc.Co-manager (312) 574-6000

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$114.20$69.13$54.40Assets:$32.12
Net Income:$2.08$0.97$0.92Liabilities:$30.21
EPS:Equity:$1.91

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
Lithia Motors is the largest retailer of new and used vehicles in Southwest Oregon, offering 14 domestic and imported makes of new automobiles and light trucks at five locations. As an integral part of its operations, the company also arranges related financing and insurance and sells parts, service and ancillary products. The company has grown primarily by successfully acquiring and integrated dealerships and by obtaining new dealer franchising. Most of the company's operations are currently located in Medford, Oregon, where it has a market share of over 40%. The company's strategy is to become a leading acquiror of dealerships in medium-sized markets in the western United STates. The company has recently entered into agreements to acquire additional dealerships in Eugene, Oregon and Salinas, California.

Use of Proceeds
The proceeds from the proposed offering will be used for the acquisition of additional automobile dealerships, payment of distributions to existing owners of previously undistributed earnings, the repayment of debt working capital and general corporate purposes.

Last updated: 12/29/96

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