GMAC in Discussions with Federal Regulators on Bank Status

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NEW YORK, October 30, 2008: GMAC Financial Services today confirmed that it is in discussions with federal regulatory authorities regarding, among other things, seeking bank holding company status under the Bank Holding Company Act of 1956, as amended.

As a bank holding company, GMAC would obtain increased flexibility and stability to fulfill its core mission of providing automotive and mortgage financing to consumers and businesses. GMAC also expects to have expanded opportunities for funding and for access to capital as a bank holding company.

In connection with this initiative, GMAC is considering raising and maintaining significant amounts of additional capital to meet regulatory requirements related to bank holding company status. In this regard, GMAC intends to commence a private offer to exchange a significant amount of its outstanding indebtedness for a reduced principal amount of new indebtedness. Details of this offering will be disclosed in the near future. GMAC cannot assure that it will become a bank holding company, that it will undertake the private exchange offer, or that if undertaken, that such private exchange offer will be completed or if completed, whether it will achieve a sufficient amount of capital to satisfy the applicable capital adequacy requirements.

"The benefits of this type of restructuring would allow us to put additional capital and liquidity resources immediately to work in financing consumers and automotive dealers," said GMAC Chief Executive Officer Alvaro G. de Molina.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering, solicitation or sale would be unlawful.