GM Annual Report and Accounts

GM Files 2005 Annual Report on Form 10-K 
 
    DETROIT, March 29 -- General Motors Corp. (NYSE: GM) today announced that it 
had finalized its 2005 financial results and filed its annual report on Form 10-
K with the Securities and Exchange Commission.  In addition, GM also included 
restated results for the years 2000 - 2004 on Form 10-K/A, as expected. 
    GM concluded its internal review involving the classification of cash 
flows principally at Residential Capital Corp. (ResCap), the residential 
mortgage subsidiary of GMAC.  Revisions were made to the consolidated 
statement of cash flows for GM for 2002 - 2004, while the 2005 annual 
statement of cash flows was finalized and reported for the first time today as 
part of the 10-K filing.  These restatements do not affect GM's, GMAC's or 
ResCap's income statements, balance sheets, or the net cash flows for any of 
the affected periods.  In addition, these revisions to consolidated cash flows 
do not affect GM's cash flows from automotive operations. 
    In concluding the review, GM determined that the cash flows related to 
certain mortgage activities were not appropriately classified as either 
operating cash flows or investing cash flows.  As a result, GM restated its 
financial statements relating to 2002 - 2004, and for the first three quarters 
of 2005.  These changes reduced operating cash flows and increased investing 
cash flows in each respective period by the same amount. 
    GM previously disclosed that it was restating its financial results for 
the calendar-year periods 2000 - 2004 and the first quarter of 2005 as a 
result of revisions in a number of other accounting areas.  All of these 
matters are detailed in GM's Form 10-K/A and Forms 10-Q/A. 
    Furthermore, as a result of cash flow adjustments mentioned above and 
other previously announced adjustments, GM concluded its consolidated 
financial statements for 2002 - 2004 and for the first three quarters of 2005 
should no longer be relied upon. 
    All of today's filings are available on GM's investor website 
(http://investor.gm.com ) as well as at the SEC. 
 
    FORWARD LOOKING STATEMENTS 
    In this press release and in related comments by General Motors' and 
General Motors Acceptance Corporation's management, the use of the words 
"expect," "anticipate," "estimate," "forecast," "initiative," "objective," 
"plan," "goal," "project," "outlook," "priorities," "target," "intend," 
"evaluate," "pursue," "seek," "may," "would," "could," "should," "believe," 
"potential," "continue," "designed," "impact," or the negative of any of those 
words or similar expressions is intended to identify forward-looking 
statements.  All statements in this press release and in related comments, 
other than statements of historical fact, including without limitation, 
statements about future events and financial performance, are forward-looking 
statements that involve certain risks and uncertainties. 
    While these statements represent our current judgment on what the future 
may hold, and we believe these judgments are reasonable, these statements are 
not guarantees of any events or financial results, and GM's actual results may 
differ materially due to numerous important factors that are described in GM's 
most recent report on SEC Form 10-K, which may be revised or supplemented in 
subsequent reports on SEC Forms 10-K, 10-Q and 8-K.  Such factors include, 
among others, the following: the resolution of accounting issues relating to 
ResCap cash flows, the ability of GM to realize production efficiencies, to 
achieve reductions in costs as a result of the turnaround restructuring, to 
achieve reductions in health care and pension costs and to implement capital 
expenditures at levels and times planned by management; the amount and rate of 
employee attrition; the pace of product introductions; market acceptance of 
the corporation's new products; significant changes in the competitive 
environment and the effect of competition in the corporation's markets, 
including on the corporation's pricing policies; our ability to maintain 
adequate liquidity and financing sources and an appropriate level of debt; 
restrictions on GMAC's and Residential Capital Corporation (ResCap)'s ability 
to pay dividends and prepay subordinated debt obligations to us; changes in 
the existing, or the adoption of new, laws, regulations, policies or other 
activities of governments, agencies and similar organizations where such 
actions may affect the production, licensing, distribution or sale of our 
products, the cost thereof or applicable tax rates; costs and risks associated 
with litigation; the final results of investigations by the SEC; costs and 
risks associated with litigation; the final results of investigations and 
inquiries by the SEC; changes in our accounting principles, or their 
application or interpretation, and our ability to make estimates and the 
assumptions underlying the estimates, which could result in an impact on 
earnings; changes in relations with unions and employees/retirees and the 
legal interpretations of the agreements with those unions with regard to 
employees/retirees; negotiations and bankruptcy court actions with respect to 
Delphi Corp.'s obligations to GM, negotiations with respect to GM's 
obligations under the pension benefit guarantees to Delphi employees, and GM's 
ability to recover any indemnity claims against Delphi; labor strikes or work 
stoppages at GM or its key suppliers such as Delphi or financial difficulties 
at GM's key suppliers such as Delphi; additional credit rating downgrades; the 
effect of a potential sale or other extraordinary transaction involving GMAC 
on the results of GM's and GMAC's operations and liquidity; other factors 
impacting financing and insurance operating segments' results of operations 
and financial condition such as credit ratings, adequate access to the market, 
changes in the residual value of off-lease vehicles, changes in U.S. 
government-sponsored mortgage programs or disruptions in the markets in which 
our mortgage subsidiaries operate, and changes in our contractual servicing 
rights; shortages of and price increases for fuel; and changes in economic 
conditions, commodity prices, currency exchange rates or political stability 
in the markets in which we operate. 
    In addition, GMAC's actual results may differ materially due to numerous 
important factors that are described in GMAC's most recent report on SEC Form 
10-K, which may be revised or supplemented in subsequent reports on SEC Forms 
10-K, 10-Q and 8-K.  Such factors include, among others, the following:  the 
ability of GM, to complete a transaction with a strategic investor regarding a 
controlling interest in GMAC while maintaining a significant stake in GMAC, 
securing separate credit ratings and low cost funding to sustain growth for 
GMAC and ResCap and maintaining the mutually beneficial relationship between 
GMAC and GM; significant changes in the competitive environment and the effect 
of competition in the corporation's markets, including on the corporation's 
pricing policies; our ability to maintain adequate financing sources; our 
ability to maintain an appropriate level of debt; the profitability and 
financial condition of GM, including changes in production or sales of GM 
vehicles, risks based on GM's contingent benefit guarantees and the 
possibility of labor strikes or work stoppages at GM or at key suppliers such 
as Delphi Corp.; funding obligations under GM and its subsidiaries' qualified 
U.S. defined benefits pension plans; restrictions on ResCap's ability to pay 
dividends and prepay subordinated debt obligations to us; changes in the 
residual value of off-lease vehicles; changes in U.S. government-sponsored 
mortgage programs or disruptions in the markets in which our mortgage 
subsidiaries operate; changes in our contractual servicing rights; costs and 
risks associated with litigation; changes in our accounting assumptions that 
may require or that result from changes in the accounting rules or their 
application, which could result in an impact on earnings; changes in the 
credit ratings of GMAC or GM; the threat of natural calamities; changes in 
economic conditions, currency exchange rates or political stability in the 
markets in which we operate; and changes in the existing, or the adoption of 
new, laws, regulations, policies or other activities of governments, agencies 
and similar organizations. 
    Investors are cautioned not to place undue reliance on forward-looking 
statements.  GM undertakes no obligation to update publicly or otherwise 
revise any forward-looking statements, whether as a result of new information, 
future events or other such factors that affect the subject of these 
statements, except where expressly required by law. 
    Use of the term "loans" describes products associated with direct and 
indirect lending activities of GMAC's global operations.  The specific 
products include retail installment sales contracts, loans, lines of credit, 
leases or other financing products.  The term "originate" refers to GMAC's 
purchase, acquisition or direct origination of various "loan" products. 
 
SOURCE  General Motors Corporation 
    -0-                             03/29/2006 P 
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