**EXHIBIT 99.1**Page 1**GM Provides Updated Preliminary 2005 Results, Delays Filing 10-K**DETROIT — General Motors Corp. (NYSE: GM) today provided updated preliminary financial resultsfor 2005 and said it will delay filing its annual report on Form 10-K with the Securities andExchange Commission due to an accounting issue regarding the classification of cash flows atResCap, the residential mortgage subsidiary of GMAC.The ResCap accounting issue relates to the erroneous classification of cash flows from certainmortgage loan transactions as cash flows from operations instead of cash flows from investingactivities. Although the company has not completed its review of this matter, the issue will notimpact either net income or the balance sheet presentation but is expected to impact thepresentation of cash flows from operating and investing activities. This issue may impact thestatements of cash flows for 2005 and prior periods at ResCap, GMAC and GM, and the impact may bematerial in some or all of the affected periods.With the exception of the ResCap accounting issue, GM is otherwise prepared to file its 2005 Form10-K and intends to do so as soon as practicable and within the next two weeks. At that time, GMalso intends to report restated results for the years ended Dec. 31, 2000 to Dec. 31, 2004 on Form10-K/A.When GM files its 10-K, will provide final financial results for 2005 that differ from thepreliminary results reported in January principally due to adjustments for three charges. Thesecharges will increase GM’s reported loss in 2005 to a total of $10.6 billion, or $18.69 per share,including special items. This compares to the previously reported loss of $8.6 billion, or $15.13per share.The final 2005 results will include an increase in the previously announced North Americanrestructuring charge; an increase to the contingent liabilities associated with Delphi Corp.’sChapter 11 filing; and recognition at the GM level of the previously reported non-cash goodwillimpairment charge of $439 million (after tax) at GMAC.
 

 
Page 2**Revision to North American Restructuring Charge**GM expects to change the amount of its 2005 North American restructuring charge to $1.7 billion(after tax) from the previously reported charge of $1.3 billion (after tax) to reflect an increasein the provision for employee costs at facilities where GM plans to cease production. Thepreviously reported charge included cash payments that would be made to affected employees duringthe current labor agreement, attributable to the JOBS bank provisions of that agreement. However,after further review, GM has determined to also include in the revised charge management’s bestestimate of the costs it expects to pay during periods after the current labor contract expires inSeptember 2007. In this regard, GM is currently in discussions with the United Auto Workers unionon an accelerated attrition program for active employees, by which GM would be able to reduce thenumber of employees in the JOBS bank in a cost effective manner. GM currently believes that anyagreement on an attrition program would not likely change the amount of this charge.**Revision to Delphi Charge, GMAC Impairment**GM also expects to increase the charge for GM’s contingent exposure relating to Delphi’s Chapter 11filing, including benefit guarantees between GM and certain unions, to $3.6 billion ($5.5 billionbefore tax) from the previous estimate of $2.3 billion ($3.6 billion before tax). GM’s currentestimate of the pre-tax range of this contingent exposure is now between $5.5 billion and $12billion, with amounts near the low end of the range considered more possible than amounts near thehigh end of the range, assuming an agreement is reached among GM, Delphi and Delphi’s unions. Thisis consistent with the company’s previously issued guidance on the range of the contingent exposureto GM and it reflects developments in the discussions with Delphi and the UAW on a comprehensiveagreement. The revised Delphi charge is based on the facts and circumstances as they exist today.Any new development in the Delphi discussions prior to GM’s filing of the 2005 10-K could result ina further update to these estimates.In addition, GM intends to recognize non-cash goodwill impairment charges of $439 million(after-tax) in the fourth quarter of 2005. These charges relate primarily to GMAC’s CommercialFinance operating segment. Previously, GM reported but did not recognize these goodwill charges inits 2005 consolidated financial statements because the goodwill was deemed recoverable by GM at theGMAC reporting unit level.
 

 
Page 3However, after further internal review of applicable accounting standards, and in consultation withthe company’s outside auditors, GM has determined that it should recognize the previously disclosedGMAC impairment in GM’s consolidated results for 2005.**Other SEC Filings**GM’s Form 10-K/A is currently expected to reflect restatements relating to supplier credits andother matters. GM had previously disclosed in November 2005 that it would restate its financialstatements for 2001 and subsequent periods to correct the accounting for supplier credits.Among the items that GM expects to restate in its Form 10-K/A are the following:GM erroneously recorded as a reduction to cost of sales certain payments and credits received fromsuppliers prior to the completion of the earnings process. GM has concluded that the payments andcredits received were associated with agreements for the award of future services or products orother rights and privileges and should be recognized when subsequently earned. The effect of theseerrors was a reduction in pre-tax income of $26 million for 2004; an increase in pre-tax income of$7 million in 2003; a reduction in pre-tax income of $69 million in 2002; a reduction in pre-taxincome of $405 million in 2001; and a reduction in pre-tax income of $52 million in 2000. Afterrestatement, a deferred credit of approximately $548 million (pre tax) would exist as of Dec. 31,2004, which will be recognized as a reduction of cost of sales in future periods.In 2001, GM erroneously recorded, as a reduction in stockholders’ equity, a $55 million pre-taxsettlement with Delphi in the form of a credit to be used against amounts owed by Delphi to GM inrelation to pension, Other Post Employment Benefits (OPEB), and other employment related benefitsof former GM employees who had transferred to Delphi. This item will now be recorded as a warrantyexpense in that period.In 2001, GM erroneously recorded $18 million of pre-tax expense related to a contract involvingDelphi’s Flint East, Mich., plant that has now been recorded as an expense in 2000.
 

 
Page 4GM erroneously calculated the anticipated effect of cost reduction initiatives on its expectedhealthcare cost trend rate for 2002 and, as a result, understated that rate. Accordingly, GM’sother postretirement employee benefit (OPEB) pre-tax expense was overstated by $9 million in 2004and understated by $51 million in 2003 and $30 million in 2002.In 2000, GM erroneously recognized a $27 million pre-tax gain on disposal of precious metalsinventory that has now been recorded as a financing transaction because GM had an obligation torepurchase the inventory in 2001.For all periods, GM intends to record all other accounting adjustments it has identified that werenot recorded in the proper period. The net effect of these other adjustments, net-of-tax, iscurrently expected to be an increase in net income of $10 million in 2004, an increase in netincome of $64 million in 2003, a reduction in net income of $81 million in 2002, an increase in netincome of $78 million in 2001, and a reduction in net income of $20 million in 2000.GM has also determined that investors should not continue to rely on its previously filed financialstatements for the first quarter of 2005 due to accounting errors resulting in an unfavorableimpact on net income of $149 million, of which $107 million relates to accounting for vehicles onoperating leases with daily rental car companies. GM’s portfolio of vehicles on operating leasewith daily rental car companies, which was impaired at lease inception, was prematurely revalued in2005 to reflect increased anticipated proceeds upon disposal.**Forward-looking Statements**In this press release and in related comments by General Motors’ and General Motors AcceptanceCorporation’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 isintended to identify forward-looking statements. All statements in this press release and inrelated comments, other than statements of historical fact, including without limitation,statements about future events and financial performance, are forward-looking statements thatinvolve certain risks and uncertainties.
 

 
Page 5While these statements represent our current judgment on what the future may hold, and we believethese judgments are reasonable, these statements are not guarantees of any events or financialresults, and GM’s actual results may differ materially due to numerous important factors that aredescribed in GM’s most recent report on SEC Form 10-K, which may be revised or supplemented insubsequent reports on SEC Forms 10-K, 10-Q and 8-K. Such factors include, among others, thefollowing: the resolution of accounting issues relating to ResCap cash flows, the ability of GM torealize production efficiencies, to achieve reductions in costs as a result of the turnaroundrestructuring, to achieve reductions in health care and pension costs and to implement capitalexpenditures 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; significantchanges 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 andfinancing sources and an appropriate level of debt; restrictions on GMAC’s and Residential CapitalCorporation (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 ofgovernments, 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; costsand risks associated with litigation; the final results of investigations by the SEC; costs andrisks 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 tomake estimates and the assumptions underlying the estimates, which could result in an impact onearnings; changes in relations with unions and employees/retirees and the legal interpretations ofthe agreements with those unions with regard to employees/retirees; negotiations and bankruptcycourt actions with respect to Delphi Corp.’s obligations to GM, negotiations with respect to GM’sobligations under the pension benefit guarantees to Delphi employees, and GM’s ability to recoverany indemnity claims against Delphi; labor strikes or work stoppages at GM or its key supplierssuch as Delphi or financial difficulties at GM’s key suppliers such as Delphi; additional creditrating downgrades; the effect of a potential sale or other extraordinary transaction involving GMACon the results of GM’s and GMAC’s operations and liquidity; other factors impacting financing andinsurance 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 mortgagesubsidiaries operate, and changes in our contractual servicing rights; shortages of and priceincreases for fuel; and changes in economic conditions, commodity prices, currency exchange ratesor political stability in the markets in which we operate.
 

 
Page 6In addition, GMAC’s actual results may differ materially due to numerous important factors that aredescribed in GMAC’s most recent report on SEC Form 10-K, which may be revised or supplemented insubsequent reports on SEC Forms 10-K, 10-Q and 8-K. Such factors include, among others, thefollowing: the ability of GM, to complete a transaction with a strategic investor regarding acontrolling interest in GMAC while maintaining a significant stake in GMAC, securing separatecredit ratings and low cost funding to sustain growth for GMAC and ResCap and maintaining themutually beneficial relationship between GMAC and GM; significant changes in the competitiveenvironment and the effect of competition in the corporation’s markets, including on thecorporation’s pricing policies; our ability to maintain adequate financing sources; our ability tomaintain an appropriate level of debt; the profitability and financial condition of GM, includingchanges in production or sales of GM vehicles, risks based on GM’s contingent benefit guaranteesand the possibility of labor strikes or work stoppages at GM or at key suppliers such as DelphiCorp.; funding obligations under GM and its subsidiaries’ qualified U.S. defined benefits pensionplans; restrictions on ResCap’s ability to pay dividends and prepay subordinated debt obligationsto us; changes in the residual value of off-lease vehicles; changes in U.S. government-sponsoredmortgage programs or disruptions in the markets in which our mortgage subsidiaries operate; changesin our contractual servicing rights; costs and risks associated with litigation; changes in ouraccounting assumptions that may require or that result from changes in the accounting rules ortheir application, which could result in an impact on earnings; changes in the credit ratings ofGMAC or GM; the threat of natural calamities; changes in economic conditions, currency exchangerates or political stability in the markets in which we operate; and changes in the existing, orthe adoption of new, laws, regulations, policies or other activities of governments, agencies andsimilar organizations.Investors are cautioned not to place undue reliance on forward-looking statements. GM undertakes noobligation to update publicly or otherwise revise any forward-looking statements, whether as aresult of new information, future events or other such factors that affect the subject of thesestatements, except where expressly required by law.Use of the term “loans” describes products associated with direct and indirect lending activitiesof 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’spurchase, acquisition or direct origination of various “loan” products.# # #Contacts: