Caterpillar, Blue Bird Unveil First School Bus Powered by ACERT(TM) Technology

FORT VALLEY, Ga., July 28 -- Caterpillar Inc. and Blue Bird Corporation, North America's leading manufacturer of school buses, today showcased Blue Bird's first school bus with Caterpillar's breakthrough ACERT(TM) technology. Caterpillar is currently the only engine manufacturer to offer both medium- and heavy-duty truck and bus engines that meet the U.S. Environmental Protection Agency's 2004 emission standards. The 2004 EPA standards require more stringent testing to demonstrate lower emissions over longer periods of engine operation.

Blue Bird unveiled its new "Vision" school bus -- powered by ACERT technology -- today at an event co-hosted by Blue Bird President & CEO Jeffry Bust and Caterpillar Inc. Chairman Glen Barton in Fort Valley, Ga. Also in attendance were Blue Bird Vice President and General Manager of School Bus Products Richard Maddox and Caterpillar Vice President and Chief Technology Officer Sherril West.

Caterpillar signed a long-term engine supply agreement with Blue Bird late last year to provide the majority of engines used in Blue Bird's school bus production. The agreement will position Caterpillar as the largest supplier of school bus engines in North America.

"We examined several options and determined that Caterpillar's ACERT technology will offer Blue Bird customers reliable engines that meet long-term emissions standards," said Maddox. "We are also impressed with Caterpillar's financial strength and extensive dealer organization. We are very excited about this new relationship between our companies, our dealers and our mutual customers."

"The introduction of ACERT technology into North America's school bus industry marks a significant milestone for our ultra low emission engine product line," said Barton. "Blue Bird is a leader in school bus technology, and we are proud to be its primary engine supplier.

"Caterpillar is well positioned to become the leading provider of low emission, clean diesel school bus engines in North America," said Barton. "ACERT is clearly emerging as the industry's long-term emissions solution for on-highway trucks and buses, as well as machines used in mining and construction in off-highway applications. The technology meets stringent EPA emissions standards while delivering the engine fuel economy, reliability and durability that our customers demand."

ACERT is a breakthrough technology that reduces emissions at the point of combustion. It builds upon Caterpillar's proven leadership in engine electronics, fuel injection systems and combustion technology. ACERT will also serve as the technology foundation for meeting future emissions regulations covering the company's entire diesel engine product line, including construction and mining machines, and power generation units.

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 in 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 http://www.cat.com/ .