Caterpillar Completes EPA 2004 Certification for Entire On-Highway Engine Product Line Powered by ACERT(TM) Technology

PEORIA, Ill., Dec. 16, 2003 -- Caterpillar Inc. is the first engine manufacturer to offer a complete line of 2004 model year clean diesel engines that are fully compliant and certified by the U.S. Environmental Protection Agency. The 2004 regulations are more rigorous than the October 2002 standards, since engine manufacturers must demonstrate lower emissions for nearly double the miles of operation in heavy duty on-highway engines. Earlier this year, Caterpillar certified the C7, C9, C13, C15, and C9 transit bus engines, all sold in the on-highway truck and bus markets.

The final Caterpillar engine to earn EPA's 2004 certification is the C11, popular with customers who operate "vocational" class trucks used to transport heavier loads over shorter distances. These include grocery store fleets, fuel tanker trucks, refuse haulers, and dump trucks. Full production of the engine, offered in the 305 to 370 horsepower range, will begin in the fourth quarter.

"Caterpillar is now the only engine manufacturer to offer a full product family of 2004 engines that are both EPA-certified and compliant," said Richard L. Thompson, Caterpillar group president with responsibility for the company's engine division. "Our customers who operate Cat engines in trucks, transit and school buses and emergency vehicles demand engines that comply with EPA standards without sacrificing performance, reliability or fuel efficiency. Caterpillar, relying on our breakthrough ACERT(TM) technology, is best positioned to meet both our customer needs and clean air goals."

"Two years ago, we took a bold step by pursuing a technology path that offers more customer value than competing engine technologies," said Thompson. "Customer acceptance of our new engines in North America continues to grow. To date, more than 15,000 customers and fleets have ordered new engines with ACERT technology."

ACERT is a differentiated technology that reduces emissions at the point of combustion. The technology capitalizes on Caterpillar's proven leadership in engine electronics, fuel injection systems, combustion technology and aftertreatment. All Caterpillar on-highway truck and bus engines are equipped with ACERT technology for 2004 production. The technology will also be used as a foundation to meet future emissions regulations for the company's entire diesel engine product line, including construction and mining machines, and power generation units.

Caterpillar is the leading manufacturer and supplier of truck and bus engines in the combined medium and heavy-duty categories in North America, holding the lead position in engine shipments to vehicle manufacturers since 1999. For the fourth year in a row, Caterpillar has been awarded the highest customer satisfaction rankings released by J.D. Power and Associates. The survey examines customer satisfaction in key areas that concentrate on engine performance, engine noise and vibration, warranty and overall quality.

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/ .