Caterpillar Remanufacturing Services Forms Strategic Alliance With Land Rover

Agreement Names Caterpillar Unit as Preferred Provider of Global Remanufacturing Services for Land Rover

PEORIA, Ill., Aug. 4 -- Caterpillar Inc. and Land Rover have signed a Memorandum of Understanding in which Caterpillar Remanufacturing Services will act as Land Rover's lead global remanufacturing services provider. The agreement names Cat Reman as a preferred supplier for Land Rover's remanufacturing products and services, providing as key elements core management and remanufactured product development and product supply.

"This new opportunity demonstrates our automotive customers' confidence in our abilities to handle a wide range of remanufacturing services," said Caterpillar Remanufacturing Services President Steve Fisher. "In the past 18 months, we have made investments in Europe to enable us to compete more effectively in this market. This announcement is recognition by our customers that these investments are working.

"We look forward to the opportunity to support Land Rover's initiative to increase new vehicle value by offering a world-class remanufactured products program."

Fisher said Land Rover customers will greatly benefit in terms of cost, quality and delivery by having a wider choice of remanufactured product options. In addition, he said, "Remanufacturing benefits the environment, because fewer components will be scrapped or sent to a landfill and we're pleased that our two companies can work together to accomplish this."

Land Rover works with a number of remanufacturing sources today. Among them is U.K.-based Wealdstone Engineering, which was acquired by Cat Reman last year. Cat Reman also has been handling Land Rover's core management at its European Remanufacturing Centre in Shrewsbury, England.

About Caterpillar Remanufacturing Services

Caterpillar Remanufacturing Services offers integrated solutions for remanufacturing development and operations, core management and distribution. One of the world's largest remanufacturers, Cat Reman operates facilities in the United States, United Kingdom, and Mexico to serve Caterpillar Inc. and other original equipment manufacturers. Cat Reman recovers materials through differentiated technology and employs environmentally sustainable practices to restore components to like-new condition.

About Caterpillar Inc.

For 80 years, Caterpillar Inc. has been building the world's infrastructure and, in partnership with its worldwide dealer network, is driving positive and sustainable change on every continent. With 2004 sales and revenues of $30.25 billion, Caterpillar is a technology leader and the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. More information is available at http://www.cat.com/ .