Caterpillar Expands Remanufacturing Business with Purchase of Leading European Automotive Engine Remanufacturer

Caterpillar Remanufacturing Services Assume Operations at U.K. Remanufacturing Facility

RUSHDEN, U.K., Aug. 16 -- Caterpillar Inc. has reached an agreement to acquire the business and assets of Wealdstone Engineering Ltd., one of Europe's leading remanufacturers of gasoline and diesel engines. Wealdstone is a privately held company based in the United Kingdom. The acquisition represents an expansion of Caterpillar Remanufacturing Services ("Cat Reman") which currently has six facilities located in the United States, Mexico and Europe serving the automotive power train remanufacturing business.

"Wealdstone offers key attributes such as world-class remanufacturing skills, automotive industry product knowledge, and strong customer relationships," commented Steve Fisher, general manager of Caterpillar Remanufacturing Services. "This acquisition is an excellent strategic fit, providing an opportunity to leverage a combination of Wealdstone and Caterpillar reman strengths to provide a portfolio of remanufacturing services to original equipment manufacturers (OEMs) in the automotive industry."

"We are delighted to become part of the Caterpillar family," said Tim Durdin, managing director of Wealdstone Engineering Ltd. "We look forward to growing the business, strengthening our position in this growing industry while offering a global service to our customers."

Wealdstone Engineering is located is Rushden, England and employs over 100 people. Its business is automotive and industrial based, and Wealdstone has been a specialist OEM remanufacturer since 1965. Wealdstone's largest long- term customers are Ford Europe and the British Ministry of Defence.

"Cat Reman is excited about the opportunity to work with Wealdstone's current customers," said Fisher. "We intend to expand our client base and serve the marketplace in an even greater capacity."

Caterpillar is one of the world's largest remanufacturers, processing more than 2 million units annually and recycling more than 100 million pounds of used products each year. Caterpillar has been in the remanufacturing business for over 30 years. Today, Cat Reman products include on and off highway engines, engine components, transmissions, hydraulic components and electronic components.

The acquisition agreement has been signed and will be effective September 1, 2004, subject to the completion of legal and regulatory requirements.

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 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/ .