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GMAC Financial Services issued the following release to announce that it has sold $5 billion of preferred membership interests and warrants to the U.S. Department of the Treasury as a participant in the Troubled Assets Relief Program (TARP) established under the Emergency Economic Stabilization Act of 2008.

GM is encouraged by recent developments involving GMAC, including the approval of bank holding company status and the injection of this $5 billion in capital by the Treasury Department. GM and GMAC are working closely together to restructure their relationship in light of these new circumstances, and our goal continues to be the restoration of available credit to allow consumers to purchase the cars and trucks of their choice.

Ray Young
Chief Financial Officer

GMAC RECEIVES $5.0 BILLION INVESTMENT FROM THE U.S. TREASURY
Announces satisfaction of conditions to and expiration of its notes exchange offers
 
NEW YORK (Dec. 29, 2008) – GMAC Financial Services today announced that it has sold $5.0 billion of GMAC's preferred membership interests and warrants to the U.S. Department of the Treasury as a participant in the Troubled Assets Relief Program established under the Emergency Economic Stabilization Act of 2008.   The sale was completed today.  
 
GMAC also announced that General Motors Corp. (GM) and an affiliate of Cerberus Capital Management contributed to GMAC the $750 million subordinated participations in the $3.5 billion se nior s ecured credit facility, as amended, between GMAC and Residential Capital, LLC in exchange for new common equity of GMAC.  In addition, GMAC announced that GM and an affiliate of Cerberus Capital Management entered into agreements to purchase $1.25 billion of new common equity.  The U.S. Treasury and GM intend to enter into an agreement for the Treasury to fund GM's share of the new common equity.
 
GMAC also announced that the conditions to its previously announced separate private exchange offers and cash tender offers have been satisfied and that GMAC has accepted all of the validly tendered GMAC old notes and ResCap old notes.  The GMAC offers and the ResCap offers are expected to settle promptly.
 
GMAC received approval of its bank holding company application from the U.S. Federal R eserve Board on Dec. 24, 2008.  As a bank holding company, GMAC has improved access to funding to provide financing to consumers and businesses.  In particular, the company intends to act quickly to resume automotive lending to a broader spectrum of customers to support the availability of credit to consumers and businesses for the purchase of automobiles.

Piece of Mind 

Because nobody knows what the future holds, being completely prepared should always be a top priority when financing a vehicle. You don’t want to take your chances as unexpected things can happen every day. Our Business Managers are always available to speak with you about the affordable solutions that we offer to put you at ease for as long as you are financing your vehicle.

Accident & Health Insurance: You never know when you may become ill or even get injured and we all know that the bills don’t stop just because you do. A & H Insurance will actually make your vehicle payments for you while you are unable to work. Since you won’t have to worry about that payment, you can concentrate on more important things.

Life Insurance: If something were to happen to you, you don’t want to leave your loved ones with any additional financial burdens. Credit Life Insurance pays off the entire balance of your loan, guaranteeing your beneficiary a free and clear title. It also does not deduct from any current policy you have, leaving your family members in the best position possible.

Gap Insurance: In the event that your vehicle is totaled and the insurance settlement is less than the balance on your loan, you would be responsible for the difference. This could mean thousands of dollars on top of your deductible coming out of your pocket. Gap coverage is an inexpensive solution that offers you peace of mind. Here is an example of how it works:

Loan balance...................................$15,000.00
Insurance value...............................$12,500.00
Difference.......................................-$2,500.00
Deductible.......................................    $500.00
Your responsibility........................... $3,000.00
Your responsibility with GAP.….. $0.00

Please call one of our Business Managers today at (540) 324-4449 for more information on how you can be completely covered.