GM Completes Sale of Majority Interest in GMAC

On Thursday, November 30, 2006, General Motors Corp. completed the sale of a 51 per cent interest in GMAC to an investment consortium led by Cerberus FIM Investors, LLC and including wholly owned subsidiaries of Citigroup, Inc., Aozora Bank Ltd. and The PNC Financial Services Group, Inc.

“The sale of a majority interest in GMAC to Cerberus is a very positive development for GMAC Residential Funding of Canada,” says Lee Goderstad, President, GMAC Residential Funding of Canada. “The Cerberus-led consortium is committed to supporting all GMAC operations worldwide and continuing the company’s tradition of strong growth and success. We look forward to continued growth as we serve the unique needs of the Canadian marketplace.”

This transaction marks a new beginning for GMAC as an independent globally-diversified finance company and as a result of the sale GMAC expects to benefit from access to a lower cost of funds as it assumes a separate and independent credit profile. The company’s independent governance by a new board is also expected to contribute to improved credit ratings and lower-cost funding.

“I am encouraged by this new partnership with Cerberus, as over the next few years, we will gain the financial resources to grow our business into new markets,” states Tim Colpitts, Vice President Capital Markets, GMAC Residential Funding of Canada. “This partnership will bolster our economic standing and long term commitments in the Canadian Financial landscape.”

In addition, GM and GMAC have entered into 10-year agreements under which GMAC will remain the exclusive provider of GM-sponsored auto finance programs and will continue to provide GM dealers and their customers with the same broad range of financial products and services as it does today.