ASV Unveils Concept Vehicle;
Caterpillar Lends Exec to Effort
4 June 1999
Announcements Made at Annual Shareholder Meeting
GRAND RAPIDS, Minn. -- ASV Inc. unveiled a lighter, smaller,
rubber-tracked all-purpose crawler as a concept vehicle at today's annual
shareholder meeting conducted in Grand Rapids, Minn., where the company is based.
In other news, ASV also announced that a Caterpillar executive will work at ASV
to oversee the growth of its Caterpillar dealer network.
"From developing new products to obtaining the expertise necessary for
growth, we're never content to sit still," said ASV President Gary Lemke.
The concept vehicle, displayed to shareholders, represents ASV's
initiative to meet the growing demand for smaller products that are gentle to
sensitive terrain, but are also powerful enough to traverse ground that is
wet, steep and rough. The micro all-purpose crawler is approximately half the
size and weight of an ASV Posi-Track(TM).
"Particularly in the landscape industry, there is a growing demand for
products that are less expensive, more maneuverable, easily transported, and
can squeeze into places today's machinery just can't," said Lemke. "At the
same time, such products will also need to be powerful and stable, with the
ability to do much of the same work the larger machines do. That's what we're
working toward."
Lemke noted that several concept vehicles are currently being built for
testing, but that no date has been set for production. If manufactured, Lemke
said that the micro all-purpose crawler would neither replace current
Posi-Track all-purpose crawlers, which are larger and more powerful, nor
compete against them.
Caterpillar Executive to Build Dealer Network
An arrangement between ASV and Caterpillar will bring Mark Glasnapp,
currently Project Manager of Caterpillar's Building Construction Products
Division, to ASV as General Manager of Marketing and Commercial Agreements,
Lemke told shareholders. Though he will remain a Caterpillar employee,
Glasnapp will be based in Grand Rapids and work exclusively for ASV. The
arrangement represents ASV's and Caterpillar's commitment to bring about
widespread distribution of the Posi-Track to Caterpillar dealers, Lemke said.
Glasnapp is expected to relocate to ASV's facility in mid-July.
"We've come to know and appreciate Mark since we began dealing with
Caterpillar," Lemke said. "Mark has the expertise to work with Caterpillar's
dealer network. He understands our products and customers, and he will lead
our efforts as we continue to add Cat dealerships to our network."
The arrangement was made possible as a result of the strategic marketing
agreement between ASV and Caterpillar. Caterpillar purchased an 8.8 percent
share of ASV Inc. in January 1999, which includes an agreement that allows ASV
to market the Posi-Track through Caterpillar's worldwide dealer network.
Glasnapp brings to his assignment at ASV more than 20 years of experience
at Caterpillar, where he's held various marketing and management positions in
the United States, Australia and Europe.
"I'm extremely excited to have the opportunity to work with ASV," said
Glasnapp, who could not attend the shareholder meeting. "I'm excited for two
reasons. First, I love the product. It's unique, innovative and there is
significant potential in the marketplace. Secondly, I've been incredibly
impressed with the dedication and positive attitude of the people at ASV."
"Because Mark Glasnapp has relationships with many Cat dealers, combined
with his skill, talent and enthusiasm for the Posi-Track, we expect the
process of growing ASV's Caterpillar dealer network to move forward more
quickly," Lemke said.
New Equipment and Parts
In other announcements, Lemke said that the John Deere/Powertech engines
that currently power the HD 4500 Series will be replaced by Caterpillar
engines. The new Cat-powered, 4810 Series is expected to go into production in
the third quarter of 1999. Lemke noted that ASV's MD 2800 Series will
continue to operate with Isuzu engines.
In addition to engines, Lemke said that ASV will be replacing other parts
on the Posi-Track, such as batteries and filters, with Caterpillar products.
In the News
Lemke also noted recent positive news coverage ASV has received. In its
May 31, 1999 issue, Business Week ranked ASV No. 68 on its list of the top 100
Hot Growth Companies for 1999. In addition, Construction Equipment magazine, a
leading construction trade publication, featured the MD 2800 Posi-Track in a
positive, six-page profile. The magazine noted that "ASV's second-generation
technology gives the new MD 2800 a refined undercarriage and hydraulic system,
plus gains in serviceability and operator comfort."
ASV designs, manufactures and sells all-purpose crawlers and related
accessories and attachments. With its patent-pending Maximum Traction and
Support System(TM) undercarriage, ASV leads all rubber-tracked, all-purpose
crawlers in technology and innovation. ASV's primary product, the Posi-Track,
traverses nearly any terrain with minimal damage to the ground, making it
effective in industries such as construction, landscaping and agriculture.
Note: The statements regarding ASV Inc. contained in this release that
are not historical in nature, particularly those that utilize terminology such
as "may," "will," "expects," "anticipates," believes," "could," or "plans,"
are forward-looking statements based on current expectations and assumptions,
and entail various risks and uncertainties that could cause actual results to
differ materially from those expressed in such forward-looking statements.
Political, economic, climatic, taxes, regulatory, technological, competitive
and other factors, such as ASV's ability to realize the anticipated benefits
from its relationship with Caterpillar and its dealers, could cause actual
results to differ materially from those anticipated in forward-looking
statements. Additional information regarding these risk factors and
uncertainties is detailed from time to time in the company's SEC filings,
including but not limited to, its report on Form 10-K for the year ended
December 31, 1998, and in its report on Form 10-Q for the three months ended
March 31, 1999.