GMAC Financial Services Begins New Era as an Independent Global

Financial Services Company 
Improved Liquidity and Credit Profile, Expanded Business Opportunities Expected 
to Enhance Future Growth Prospects 
NEW YORK, Nov. 30 /PRNewswire/ -- GMAC Financial Services opens its doors
today as an independent global financial services company after 87 years as a
wholly owned subsidiary of General Motors Corp. 
GM today completed the sale of a majority equity stake 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.  As a result of this transaction, GMAC expects to benefit
from access to a lower cost of funds as it assumes a separate and independent
credit profile and independent governance by a new board.  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. 
GMAC's existing management team will remain in place and is led by Chief
Executive Officer Eric Feldstein, President William Muir, and Chief Financial
Officer Sanjiv Khattri. 
"GMAC has had tremendous success -- more than $9.4 billion of net income
since the beginning of 2003 -- during a time when our credit ratings were
under pressure and our access to capital was constrained," said Feldstein.
"This accomplishment reflects the consistently strong operating results of our
core business units despite the funding challenges we encountered." 
GMAC has established itself as the leading global auto finance company,
the largest provider of automotive extended warranty and dealer vehicle
inventory insurance, and a Top 10 participant in real estate finance with nine
consecutive years of market share growth.  The company has a superior asset
origination capability -- more than $60 billion per year just in the auto
segment -- and a world-class servicing capability in both auto and mortgage. 
"The prospects for GMAC look quite promising as we now combine our
existing business strengths with improved credit ratings, a more competitive
cost of funds, and a strengthened capital base to support profitable growth,"
Feldstein said. 
New GMAC Board of Directors Named 
The company's new 13-member board was named today.  The board includes
independent members as well as representatives from the Cerberus-led
consortium and GM.  Ezra Merkin, a managing partner with Gabriel Capital
Group, has been named non-executive chairman of the GMAC Board.  Other members
of the board are as follows: 

    *  Walter Borst, General Motors Treasurer
    *  Frank Bruno, Cerberus Global Investments LLC President and Managing
    *  T.K. Duggan, Durham Asset Management co-founder
    *  Fritz Henderson, General Motors Vice Chairman and Chief Financial
    *  Douglas Hirsch, Seneca Capital founder and Managing Partner
    *  Michael Klein, Citigroup Chief Executive Officer, Global Banking
    *  Mark LaNeve, General Motors Vice President North America Vehicle Sales,
       Service and Marketing
    *  Mark Neporent, Cerberus Capital Management L.P. Chief Operating Officer
       and Senior Managing Director
    *  Seth Plattus, Cerberus Capital Management L.P. Chief Administrative
       Officer and Senior Managing Director
    *  Bob Scully, Morgan Stanley Co-President
    *  Lenard Tessler, Cerberus Capital Management L.P. Managing Director
    *  Rick Wagoner, General Motors Chairman and Chief Executive Officer

The consortium, which will hold a 51-percent interest in GMAC, is
committed to a long-term investment horizon through a five-year minimum hold
period.  Cerberus has also committed to reinvest all of its after-tax
distributions into GMAC preferred stock in years 3-5 after closing. 
"Cerberus Capital and the investor consortium are committed to a long-term
partnership that will bring sustained growth, diversity of product offerings
and lasting benefits to GMAC," said Mark Neporent, Cerberus' chief operating
officer and senior managing director.  "We're committed to helping GMAC
compete even more effectively and continuing its tradition of strong growth
and success.  Cerberus has great confidence and respect for the people of GMAC
and we look forward to the continued success of GMAC as an independent
GMAC's capital base has been bolstered by $1.9 billion through its
issuance of preferred equity to GM ($1.4 billion) and Cerberus ($500 million).
The company's previously announced $10 billion asset-backed facility, arranged
through Citibank, will offer an additional source of liquidity.  Strengthened
by the company's new ownership and independent governance structure, GMAC
expects improved credit ratings will lead to lower-cost funding. 
"Today marks an exciting new era for GMAC.  Our improved capital position
and credit profile enable us to play offense again," said Feldstein.  "With a
global franchise spanning nearly 40 countries, and world-class asset
origination and servicing capabilities, GMAC is well positioned to generate
increasing revenue at higher returns across all of our businesses long-term." 
GMAC is a global financial services company that operates in approximately
40 countries, in auto finance, real estate finance, commercial finance and
insurance businesses.  With more than $300 billion in assets, it generated
$2.5 billion in net income in 2005, on revenue of $19.2 billion. 
Forward-Looking Statements 
In this press release and in related comments by GMAC management, we 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," "impact" or similar
expressions to identify forward-looking statements that represent our current
judgments about possible future events.  We believe these judgments are
reasonable, but GMAC's actual results may differ materially due to a variety
of important factors that are described in GMAC's most recent report on SEC
Form 10-K, as revised or supplemented in subsequent reports on SEC Forms 10-Q
and 8-K. 
Among other items, such factors include securing low cost funding to
sustain growth for GMAC and Residential Capital Corporation ("ResCap") and
maintaining the mutually beneficial relationship between GMAC and GM; our
ability to maintain adequate financing sources and an appropriate level of
debt; 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; 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.  GMAC 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. 

SOURCE  GMAC Financial Services 
Toni Simonetti, +1-917-369-2360, , or Mike Stoller, +1-313-665-0955, , both of GMAC Global Communications
-0- Nov/30/2006 17:03 GMT
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