Caterpillar Expands Remanufacturing Business with New Acquisition

Peoria, IL— Caterpillar Inc. and Remy International, Inc. have announced that Caterpillar Remanufacturing Services (Cat Reman) will acquire Williams Technologies, Inc. (WTI), a leading remanufacturer of automatic transmissions, torque converters, and engines for automotive and medium and heavy-duty truck applications. Williams Technologies currently remanufactures over 40 transmission models for a variety of automotive original equipment manufacturers (OEM) and vehicle platforms. This acquisition represents an expansion of Caterpillar Remanufacturing Services into the automotive powertrain remanufacturing business.

Caterpillar is one of the world’s largest remanufacturers, recycling more than 100 million pounds of used iron every year into remanufactured engine, transmission and hydraulic components. The acquisition also builds on relationships already established in the automotive industry by Caterpillar subsidiary Caterpillar Logistics Services, Inc.

Williams Technologies is located in Summerville, South Carolina and employs approximately 500 personnel. Williams will join seven other Caterpillar remanufacturing facilities located in the U.S., Mexico and Europe.

Caterpillar and Remy recently signed the definitive agreement for the sale of Williams Technologies. The acquisition agreement will be effective September 1, 2004 subject to the completion of legal and regulatory requirements.