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April 2004

Caterpillar Offers Remanufacturing Services to Other Companies

Peoria, IL— Caterpillar Inc. is expanding its remanufacturing business to provide services for manufacturers and customers in industries beyond those Caterpillar currently serves.

Caterpillar Remanufacturing Ser-vices will leverage Caterpillar’s industry leading remanufacturing technology and processes to serve original equipment manufacturers (OEMs) in the automotive and industrial products industries as well as the defense industry. In addition to offering remanufacturing services to OEMs, Caterpillar Remanufacturing Services will continue to be the exclusive provider of Caterpillar remanufactured products distributed through the worldwide Caterpillar dealer network.

“Caterpillar Remanufacturing Ser-vices will make Caterpillar’s global remanufacturing capability available to OEMs in other industries, including defense, to help them and their customers reduce costs, improve quality and protect the environment,” commented Bill Springer, vice president of Caterpillar’s Product Support Division. “This expansion of our remanufacturing strategy supports Caterpillar’s growth toward $30 billion in sales and revenues and builds on our very successful ‘services business model,’ which includes Caterpillar Logistics Services and Caterpillar Financial Services. Caterpillar is uniquely positioned to offer a combination of world-class remanufacturing capabilities, used product recycling systems and logistics synergies to satisfy client needs on a global basis.”

Caterpillar is one of the world’s largest remanufacturers. The company’s current remanufacturing program processes more than 2 million units annually, recycling more than 100 million pounds of used products each year. Cat Reman products were originally developed for Cat(R) engines used in the on-highway truck market but now include engine components, transmissions, hydraulic components and electronic components.

“Caterpillar has been in the remanufacturing business since the early 1970s and has developed unique expertise in salvage and reconditioning that not only contributes to a sustainable environment, but has significantly lowered our customers’ repair costs,” explained Steve Fisher, general manager of Caterpillar’s Remanufactured Products Group. “Through Caterpillar Remanufacturing Services, OEMs will be able to leverage Caterpillar’s technology, scale, and global reach to compete for higher aftermarket sales and lower their warranty costs.”

Caterpillar uses state-of-the-art remanufacturing technology to “recycle” used products, like engines and transmissions, into like-new components. Remanufactured products can provide other industries with a low cost, like-new service replacement component with the added environmental benefit of managing the product on a “cradle-to-cradle” versus a “cradle-to-grave” lifecycle. Caterpillar Remanufacturing Services currently operates six remanufacturing facilities in the United States, Europe and Mexico.

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