Caterpillar Announces Support for EPA Program to Reduce Emissions on School Buses

PEORIA, Ill., April 8 -- Caterpillar Inc. today announced support for a major initiative by the U.S. Environmental Protection Agency to substantially reduce emissions from school buses across the United States. The EPA's Clean School Bus USA initiative will seek federal funding and industry technology support to retrofit existing school bus engines with new, emission reduction technology.

The EPA unveiled the Clean School Bus USA initiative at events yesterday in Philadelphia, Pa., and Washington, D.C., attended by EPA Administrator Christine Todd Whitman and industry leaders, including Caterpillar Vice President Sherril West. The EPA program will help school districts and school bus fleet operators either replace older buses with newer models or install low emission control devices on existing buses.

"As the world leader in emissions reduction technology, Caterpillar is well equipped to provide technology solutions to school bus retrofit programs around the country," said West, who is the company's Chief Technology Officer. "We have invested heavily in technology that not only provides clean diesel engines for the future, but substantially reduces emissions from existing engines."

Caterpillar is positioned to become the largest supplier of school bus engines in North America. The company recently won an agreement to supply the majority of new engines to Blue Bird Corporation, a leading supplier of school buses in North America. In addition, Caterpillar is the largest engine supplier to Thomas Built, a subsidiary of DaimlerChrysler's Freightliner Division.

Caterpillar recently formed the Emissions Retrofit Solutions Group to provide emissions reduction options for machines, trucks and buses used in both on-and-off-road applications. The company is already involved in several school bus retrofit programs around the country. Most recently, Caterpillar won a contract to supply the Boston Public School District with technology that will reduce diesel particulate emissions on school buses by more than 90 percent.

Caterpillar has reduced on-highway diesel emissions in trucks and buses by nearly 90 percent since 1988 and will reduce those emissions another 90 percent by 2007. The company recently launched a new line of engines equipped with low emission, ACERT(TM) technology that will power school and transit buses and on-highway trucks. The technology will also help the company meet future EPA emissions regulations in both on-and-off-highway engines.

For more than 75 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 2002 sales and revenues of $20.15 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 www.cat.com .

Components of the Caterpillar program described above were initially undertaken pursuant to an agreement with the United States in connection with settlement of disputed claims in an enforcement action under the Clean Air Act.