A new generation of Earth gravity field models called GGM02 are derived using approximately 14 months of data spanning from April 2002 to December 2003 from the Gravity Recovery And Climate Experiment (GRACE). Relative to the preceding generation, GGM01, there have been improvements to the data products, the gravity estimation methods and the background models. Based on the calibrated covariances, GGM02 (both the GRACE-only model GGM02S and the combination model GGM02C) represents an improvement greater than a factor of two over the previous GGM01 models. Error estimates indicate a cumulative error less than 1 cm geoid height to spherical harmonic degree 70, which can be said to have met the GRACE minimum mission goals.