The Pros and the Cons

May 11, 2006

GENERAL MOTORS ANNOUNCES COLLABORATION WITH STATE OF INDIANA AND MEIJER GAS STATIONS TO HELP MORE INDIANA MOTORISTS POWER THEIR GM FLEXFUEL VEHICLES WITH E85 ETHANOL

INDIANAPOLIS – General Motors today announced that it has facilitated plans for the addition of several new E85 ethanol fueling sites throughout Indiana thanks to a collaborative partnership with Meijer and the state of Indiana. GM has been the catalyst behind several similar partnerships across the country as part of a broader, national GM campaign to boost the use and awareness of ethanol-based E85 fuel in the United States.

The announcement was made today during a ribbon cutting to celebrate the opening of an E85 ethanol pump at the Meijer Pike Plaza 129 store. Governor Mitch Daniels and Lt. Governor Becky Skillman were on hand for the event along with U.S. Secretary of Energy, Samuel Bodman.

“Flexible fuel vehicles and E85 are proven options for substituting a clean burning renewable fuel for gasoline, and I believe it should be our common goal that E85 become a nationwide fueling option,” Secretary Bodman said. “I want to thank Governor Daniels, Lt. Governor Skillman, GM and Meijer for their commitment to this goal. Efforts like these—to educate the public and expand the network of stations that can deliver E85 fuel—will help us meet the President’s goal to reduce our reliance on foreign sources of oil.”

“Indiana is rapidly emerging as a producer of renewable fuels. That must be matched by greater availability and convenience for consumers,” said Gov. Daniels. “The commitment by GM and Meijer is a big leap forward on the demand side, and we’re hopeful others will follow suit.”

GM and Meijer will work together to identify up to twenty locations throughout the state over the next few months, with the first location, at the Pike Plaza 129 store, open for consumers today. General Motors will spend significant advertising and promotion dollars to help generate awareness of E85 flexible fuel vehicles—and where consumers can purchase E85 ethanol—with consumer marketing initiatives and dealer outreach.

“GM already has nearly two million vehicles on the road today that are capable of using E85 ethanol fuel. We appreciate that Meijer continues to join our efforts to make this great fuel alternative available to more people in Indiana,” said Elizabeth Lowery, GM vice president of environment and energy. “We also appreciate the support of Sec. Bodman, Gov. Daniels, Lt. Gov. Skillman and the State of Indiana as we continue to promote the use of E85 ethanol and its many benefits for the environment, the economy and consumers.”

The effort is similar to announcements GM has already made with other state government, oil industry, ethanol producers, and retail partners in California, Illinois, Michigan, Minnesota, South Dakota and Texas. Since May of 2005, GM has announced partnerships with states and fuel providers around the country to locate, to date, up to 130 new E85 ethanol fueling locations by the end of 2006.

Corn is the leading source of income for Indiana farmers contributing $1.45 billion annually. Indiana produces 786.9 million bushels of corn a year, providing a basis for millions of gallons of ethanol to be produced in the future. There are currently nearly 70,000 GM flexible fuel vehicles in Indiana, with a total of 90,000 flexible vehicles in the state.

“Agriculture will be a chief economic driver in Indiana and we are very serious about turning this state into a national leader in the production of biofuels,” said Lt. Gov. Skillman. “Today’s announcement is another important step in expanding the availability of E85 ethanol so more Hoosiers can have access to this important renewable fuel.”

Meijer continues to develop partnerships to promote alternative fuels. “We are thrilled to partner with GM and the state of Indiana to promote the availability of E85 ethanol and provide our customers with choices such as E85 ethanol that will enhance the environment and provide greater independence from foreign fuels,” said Judith Clark, communications director for Meijer.

E85 flexible fuel vehicles can run on any combination of gasoline and/or E85 ethanol, a fuel blend of 85 percent ethanol and 15 percent gasoline. E85 ethanol can contribute to energy independence because it diversifies the source of transportation fuels beyond petroleum, and it provides positive environmental benefits in the form of reduced greenhouse gas emissions.

Phil Lampert, executive director of the National Ethanol Vehicle Coalition (NEVC) was also on hand for the announcement. “The NEVC is pleased to see the number of E85 fueling sites continue to grow across the country,” said Lampert. “GM, the state of Indiana and Meijer are true leaders in advancing domestically produced alternative transportation fuels.”

GM has a long relationship with the state of Indiana. Indianapolis is the base of GM’s Allison Division and the state is home to over 10,000 GM employees and 40,000 GM retirees, as well as five plants and over 200 dealers. GM builds E85 capable trucks, as well as the only full-size hybrid pickup in America, at its assembly plant in Fort Wayne.

GM also partnered with the Indiana State Department of Agriculture last November to provide twenty E85-capable vehicles to residents of Reynolds, Ind. to use for two years. Reynolds, the first BioTown, USA, is developing a community that meets all of its energy needs through biorenewable resources. Phase 1 of the BioTown, USA plan for Reynolds revolved around making Reynolds the highest per capita usage city of flexible fuel vehicles in the United States.

In May, 2005, GM presented Lt. Governor Skillman with a one-year loan of an E85-capable Chevy Tahoe to help promote E85 in the state as part of an ongoing campaign by GM and the Governors’ Ethanol Coalition (GEC), a bipartisan group of governors devoted to the promotion and increased use of ethanol. This collaborative effort, which was launched in early 2005, is designed to increase awareness of ethanol and flexible fuel vehicles, and to promote the increased use of E85 as a renewable, alternative transportation fuel that is able to meet the demands of today’s drivers. Last year, GM loaned E85 flex-fuel vehicles to Indianapolis and 27 other states and organizations in order to demonstrate its commitment to ethanol, educate the public and promote the benefits of using E85. GM will continue the program through 2006 and will present the state of Indiana with a new E85 flexible fuel vehicle later this month.

Research has shown that many owners of flex-fuel vehicles do not know that their vehicles are capable of using E85. In January, GM announced a sweeping consumer education and advertising campaign aimed at promoting the benefits of E85 and GM’s flexible fuel vehicle leadership, and encouraging consumers to actively promote E85 in their communities. “Live Green Go Yellow” ads continue throughout the year with print, web (livegreengoyellow.com) and broadcast media components.

With two million flexible-fuel vehicles already on the road, GM is a leader in flexible-fuel vehicle production and sales. For the 2006 model year, GM offers nine E85 flexible fuel vehicles, including the Chevrolet Tahoe, GMC Yukon, Chevrolet Suburban, GMC Yukon XL, Chevrolet Silverado, GMC Sierra, Chevrolet Avalanche, Chevrolet Impala, and the Chevrolet Monte Carlo. GM also plans to add more than 400,000 E85-capable vehicles to the fleet in 2006. At the same time, worldwide production of ethanol is increasing every year, and is expected to triple by 2020.

About GM:
General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. More information on GM can be found at www.gm.com.

About Meijer, Inc.:
Based in Walker, Mich., Meijer is a family-owned and operated company operating supercenters throughout the Midwest. Meijer operates more than 170 stores in Michigan, Ohio, Indiana, Illinois and Kentucky. For more information, visit www.meijer.com