GM Provides Update on Accounting Issues

GM Provides Update on Accounting Issues

    DETROIT, Feb. 19 - General Motors Corp. (NYSE: GM) announced today it has 
substantially completed its previously announced review of deferred income 
taxes as well as the accounting for derivatives under Statement of Financial 
Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and 
Hedging Activities.  GM has determined that its previously filed financial 
statements and financial information for 2002 through the third quarter of 
2006 should no longer be relied upon, largely due to adjustments in hedge 
accounting.
    GM's accounting adjustments under SFAS No. 133 are substantially complete, 
although some work remains.  The current estimate of the cumulative impact of 
these SFAS No. 133 adjustments to retained earnings, including GMAC, as of 
September 30, 2006 is an increase of approximately $200 million.
    In addition, GM previously disclosed that retained earnings as of December 
31, 2001 and subsequent periods were understated by a range of $450 million to 
$600 million due to an overstatement of deferred tax liabilities.  GM 
currently estimates that the deferred tax liability overstatement is 
approximately $1 billion.  This impact is partially offset by an estimated 
$500 million adjustment to stockholders' equity related to taxation of foreign 
currency translation, arising primarily prior to 2002, and affects all periods 
through the third quarter of 2006.  The net impact of such tax adjustments 
results in an understatement of stockholders' equity as of December 31, 2001 
and subsequent periods of approximately $500 million.
    GM is currently working toward filing its Form 10-K with restated 
financial information by the due date, March 1, 2007.  If necessary, it would 
expect to obtain an extension from the SEC and file prior to the extended 
deadline, March 16, 2007.
    GM does not expect these adjustments to have any material impact on cash 
flow for any of the restated periods. 
    General Motors Corp. (NYSE: GM), the world's largest automaker, has been 
the global industry sales leader for 76 years.  Founded in 1908, GM today 
employs about 284,000 people around the world.  With global headquarters in 
Detroit, GM manufactures its cars and trucks in 33 countries.  In 2006, 9.1 
million GM cars and trucks were sold globally under the following brands:  
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, 
Saab, Saturn and Vauxhall.  GM's OnStar subsidiary is the industry leader in 
vehicle safety, security and information services.  More information on GM can 
be found at www.gm.com.

    Forward-Looking Statements
    In this press release and in related comments by General Motors' 
management, we will use words like "expect," "anticipate," "estimate," 
"forecast," "initiative," "objective," "plan," "goal," "project," "outlook," 
"priorities," "target," "intend," "evaluate," "pursue," "seek," "may," 
"would," "could," "should," "believe," "potential," "continue," "designed," or 
"impact" to identify forward-looking statements that represent our current 
judgments about possible future events.  We believe these judgments are 
reasonable, but GM's actual results may differ materially due to a variety of 
important factors.  Among other items, such factors include: completion of the 
restated adjustments, changes in our accounting principles, or their 
application or interpretation, and our ability to make estimates and the 
assumptions underlying the estimates, factors affecting GMAC's results of 
operations and financial condition such as credit ratings, interest rates, the 
housing market, changes in U.S. government-sponsored mortgage programs or 
disruptions in the markets in which our mortgage subsidiaries operate, and 
changes in its contractual servicing rights; and changes in economic 
conditions, currency exchange rates and valuations associated with derivative 
instruments.
    The most recent annual reports on Form 10-K and quarterly reports on Form 
10-Q filed by GM and GMAC provide information about these factors, which may 
be revised or supplemented in future reports to the SEC on those forms.

SOURCE  General Motors Corporation
    -0-                             02/19/2007 P
    /CONTACT:  Melisa Tezanos, [phone], Email: [e-mail], or 
Randy Arickx, [phone], Email: [e-mail], both of General 
Motors Corporation/
    /Web site:  http://media.gm.com 
                http://www.gm.com/
    (GM)