Caterpillar Becomes First Company With a Full Line of EPA Certified Off-Road Engines

Award-winning ACERT(R) Technology Provides Foundation for Milestone

PEORIA, Ill., July 13 -- Caterpillar Inc. further solidified its position as the emissions reduction leader on July 8, 2004, when the Environmental Protection Agency certified a full line of off-road engines as compliant with Tier 3 standards slated to go into effect in January 2005 and January 2006.

The EPA certification of seven Caterpillar engine models allows early production of cleaner Tier 3 diesel engines. It also enables Caterpillar to provide customers with a full line of engines featuring ACERT(R) technology in the 175-750 horsepower range. The company will ship fully tested Tier 3 clean diesel engines to industrial OEM customers this month. Cat machines powered by Tier 3 compliant engines will reach the market in October 2004, three months before the 2005 implementation date for the 300-750 horsepower range and fifteen months before the required 2006 implementation date for the 175-300 horsepower range.

"This is a tremendous milestone for Caterpillar, and it's another testament to the value of Caterpillar's breakthrough ACERT technology," said Gary Stroup, Caterpillar vice president with responsibility for the Large Power Systems Division. "We've invested heavily in blazing a new path in emissions reduction technology, and these certifications are proof that the investment is paying off for our company, our customers and our environment."

The Tier 3 regulations apply to clean diesel engines used in construction and mining machines, as well as industrial power equipment. With more than 100 pre-production machines already in the field, customer feedback is strong in all respects, including fuel efficiency, power and reliability.

"The EPA certification and overwhelmingly positive customer feedback is a credit to all the hard-working Cat employees who remain committed to delivering the very best," Stroup added. "They recognize the environmental and performance benefits ACERT technology brings and have once again proven what's possible when world-class engineers and scientists are given the resources and freedom to innovate solutions for a better tomorrow."

In addition to its readiness to meet Tier 3 standards, using ACERT technology, the company also has a clear path to reach upcoming Tier 4 standards. Caterpillar has reduced emissions in off-road machines by more than 40 percent since 1995 and, by meeting the Tier 4 regulations, will reduce emissions an additional 90 percent by 2014.

"We commend the EPA for their unwavering commitment to listening to the industry, and we share their goals for cleaner air," said Douglas R. Oberhelman, Caterpillar Group President. "These standards grow more difficult at each step, but are vitally important as we advance the merits of clean diesel technology around the country. Improved air quality is important to all of us, and diesel is a key solution. Caterpillar is best positioned to meet Tier 3 as well as future EPA standards with the most reliable clean diesel engine technology available in the world."

Oberhelman said Caterpillar agrees with EPA's comprehensive "systems" approach to establishing the Tier 4 rules, which not only address engine emissions, but also the important issues of cleaner fuel and engine aftertreatment technology.

In related news on Tuesday, the Intellectual Property Owners Association named two Caterpillar engineers as National Inventors of the Year for their work on ACERT technology. Jim Weber and Scott Leman are among the hundreds of Caterpillar employees responsible for the breakthrough technology, and were specifically recognized for their invention of a new air management system combined with precise valve control to reduce emissions at the point of combustion.

Weber and Leman's invention, combined with advanced fuel systems, engine electronics and effective aftertreatment, make up the emissions-reducing ACERT technology.

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 2003 sales and revenues of $22.76 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/ .