Caterpillar Logistics Signs Agreement With Cadillac Europe

Caterpillar Subsidiary to Provide Wide Range of Aftermarket Logistics Services to Several GM Brands in European Market

BRUSSELS, Belgium, Aug. 23 -- Caterpillar Logistics Services, Inc. (Cat Logistics), a wholly owned subsidiary of Caterpillar Inc. , has signed a logistics services agreement with Cadillac Europe B.V., importer of the premium U.S. Cadillac, Chevrolet and Corvette brands into the European market. Cat Logistics will provide a wide range of aftermarket logistics services to support Cadillac Europe's plans for growth in the region.

Cat Logistics will assist Cadillac Europe with its market approach of "one importer with one strategy for Europe," keeping close to the market with lean distribution concepts. From a logistics facility in Puurs, Belgium, Cat Logistics will serve Cadillac Europe's network of its own and third-party dealers throughout mainland Europe. As well as providing the more traditionally outsourced core logistics activities of inventory management, warehousing, order processing and transport administration, Cat Logistics will also support Cadillac Europe with supplier management, inventory file maintenance, a multi-lingual customer service team, and direct web-enabled customer order processing.

"We are relying on Cat Logistics bringing together its warehouse management, materials planning expertise and systems into a fully integrated logistics solution which processes our orders efficiently and accurately, and improves our off-the-shelf fill rates," said Wim Harmsen, vice president of Cadillac Europe.

"Cat Logistics is pleased to be associated with this exciting brand," commented Pascal Herroelen, vice president of Caterpillar Logistics Services, Inc., Client Services Division. "We're confident that the combination of Cadillac Europe's skill in product marketing and sales, and Cat Logistics' experience in automotive aftermarket logistics will be a winning formula."

The recently signed logistics services agreement will be implemented in the third quarter of 2004.

Caterpillar Logistics Services, Inc. provides world-class supply chain solutions and services to its parent company, Caterpillar Inc., and over 50 companies throughout the world. Headquartered in Morton, Illinois, Caterpillar Logistics operates 100 offices and facilities in 25 countries on 6 continents. Caterpillar Logistics provides its full service capabilities to companies in market sectors, which include automotive service parts, industrial service parts, consumer durables, technology and electronics, manufacturing logistics, and aerospace service parts. Further information is available on http://www.catlogistics.com/ .

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/ .