Caterpillar Chairman James W. Owens is Named '2005 Manager of the Year' by Business Journal Stark's Truck & Off-Highway Ledger

CHICAGO, Nov. 9, 2005 -- James W. Owens, 59, chairman and chief executive officer of Caterpillar Inc., a major manufacturer of construction, mining and utility-type vehicles, diesel and natural gas engines, and industrial gas turbines, was selected this week by the business journal Stark's Truck & Off-Highway Ledger as its 18th annual "Manager of the Year."

The respected business publication cited continuing efforts to diversify its product portfolio through aggressive investment in new innovative technologies, especially at its key construction machinery-making division and diesel engine unit, as a primary reason for the selection of the Caterpillar chairman as its '2005 Manager of the Year.'

Stark's Truck & Off-Highway Ledger said, "The firm has methodically expanded profits, sales and shareholder dividends, while remaining resilient of various negative economic factors, including escalating costs for raw materials used to manufacture machinery and engines as demand for metals and energy outpaces supply growth and easing parts availability from its suppliers.

"Other pesky business impairments that have kept Caterpillar 'in-check' involve rising healthcare and pension costs for its workers, widely publicized macroeconomic volatilities and worldwide currency fluctuations that directly impact its niche markets, as well as stringent environmental emissions policies that require significant capital investment in technology for the diesel engine and machinery markets it serves."

The business journal added, "Mr. Owens has maintained Caterpillar's place as a market leader by adequately targeting strategic price realization tactics to nurse its cost-structure and remain fiscally responsible."

At the start of the 2005 fourth quarter, Caterpillar's CEO confirmed price increases on construction machinery and diesel engines, 1-5% over 2004 levels implemented earlier this year, appeared to be holding in the markets, enabling the firm to recover much of the rising costs it was incurring for materials and components, Stark's Truck & Off-Highway Ledger said, adding Mr. Owens noted in the first half of the year, ended last June, that the strength of Caterpillar's main markets was "clearly not a blip on the radar."

However, after reviewing material costs, especially steel and other commodities, he methodically implemented the price increases on construction machinery and diesel engines to help keep the firm's 2005 profits afloat, and to better handle operating costs, the publication said.