Purchase of Common Stock

General Motors Corp
18 August 2000


Contact: Toni Simonetti
         212-418-6380

         Steven J. Harris
         313-667-3437


GENERAL MOTORS RECEIVES NOTICE THAT ICAHN INTENDS TO PURCHASE ITS STOCK

DETROIT - General Motors (NYSE GM, GMH) today said that it received notice on
August 16 from Carl Icahn that he intends to acquire more than $15 million
worth, but less than 15 percent, of GM $1-2/3 common stock subject to clearance
under the Hart Scott Rodino Anti-trust Improvements Act.

In order to ensure GM satisfies its disclosure obligations under federal
securities laws, General Motors decided to make today's announcement in order to
provide this information to public stockholders as GM continues its previously
announced $1.4 billion share repurchase program. GM had commenced this
repurchase of GM $1-2/3 common stock in order to partially offset the issuance
of stock to Fiat in connection with the strategic relationship recently
established between the two companies.

GM believes that its common stock is undervalued at its current trading
price.  In light of the aggressive shareholder value initiatives which the
company has undertaken over the last several years, and its continued
commitment to enhancing shareholder value, GM stock is an attractive investment.

'Our track record is clear,' said GM Chairman John F. Smith, Jr. 'We have
returned more than $34 billion to our shareholders since 1997, while
simultaneously strengthening our financial position, funding profitable
growth initiatives and establishing strategic global relationships in our
various business segments.

'During this period, GM has also achieved record earnings, underscoring our
commitment to do more with less... improving earnings while utilizing less
shareholder capital,' Smith said.

The company's recent restructuring of its economic interest in Hughes was a
clear example of this commitment to shareholder value enhancement.  At that
time, the company said it was stepping up the pace of its evaluation regarding
what Hughes ownership structure would be optimal for the two companies.

'We continue to look at ways to further unleash value from our ownership of
Hughes while preserving our strong credit ratings,' said Smith.