S&P Equity Research Downgrades Shares of General Motors to Sell (2-STARS) from Hold (3-STARS)

NEW YORK, Jan. 26, 2006 -- Standard & Poor's Equity Research has downgraded its opinion on shares of General Motors to Sell (2-STARS out of 5) from Hold (3-STARS) at $23.85 per share. GM reported an adjusted Q4 loss of $2.09 vs. adjusted EPS of $1.28, a figure wider than S&P's projected $0.27 loss. S&P's automotive equity analyst, Efraim Levy, stated that GM's earnings quality appears even worse than stated because the company's announcement excludes costs for employees being shifted to job banks in connection with restructuring efforts. Separately, S&P believes that Tracinda Corporation's purchase of 12 million GM shares this week could boost some investors' confidence in GM's ability to improve its financial performance. However, S&P does not share the same confidence.

   Efraim Levy, CFA
   Sr. Automotive Industry Analyst
   Standard & Poor's Equity Research

The analyst quoted above is a Standard & Poor's Equity Analyst. He has no affiliation with any company he covers. He has no ownership interest in any company he covers. Standard & Poor's other affiliates may provide services to the companies that are the subject of this report.

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