Owens Announces Opening of Cat Logistics Facility in China

Owens Announces Opening of Cat Logistics Facility in China

March 31, 2006

Shanghai parts distribution facility will initially serve Caterpillar dealers in China, with Korea and Mongolia joining by the end of 2006

    SHANGHAI, China, March 31 /Xinhua-PRNewswire/ --
Caterpillar Inc. (NYSE: CAT) subsidiary Caterpillar
Logistics Services, Inc. (Cat Logistics) has opened a new
parts distribution center in the Lingang Industrial Area in
Shanghai.  The distribution center is currently providing
parts for Caterpillar dealers in China, with plans to
expand parts distribution from the location to dealers in
Korea and Mongolia by the end of 2006.  Caterpillar
Chairman and Chief Executive Officer Jim Owens was in
Shanghai today, meeting with Cat Logistics employees who
will help operate this new facility.

    "Caterpillar is honored to play a role in the
tremendous progress that is taking place in China,"
said Owens.  "Whenever I travel to China, I take great
pride in seeing Caterpillar machines at work building roads,
airports, schools, hospitals and homes.  This new logistics
facility will play a key role in helping our Chinese
customers as they continue to take part in China's
incredible economic growth."

    The new 21,000 m(2) (226,042 ft(2)) distribution center
will distribute parts to 34 dealer locations in China and
will initially employ approximately 40 logistics
professionals and carry in excess of 21,000 part numbers
for Caterpillar machine and engine products.

    "The opening of the China Distribution Center is
evidence of Caterpillar's commitment to supporting our
valued local dealerships and customers in this
region," said Mary Bell, Caterpillar vice president
with responsibility for Caterpillar Logistics Services,
Inc.

    The establishment of the China Distribution Center
positions Cat Logistics to manage aftermarket parts
distribution for other companies seeking a presence in the
Chinese marketplace.  Cat Logistics currently provides
integrated logistics solutions for more than 60 global
companies.  

    "The opening of the China Distribution Center is
evidence of our ability to provide integrated logistics
services for Caterpillar and for companies conducting
business in China who are looking to improve product
support for their customers," said Gary Wan, market
segment director, Caterpillar Logistics Services China
Ltd.

    Caterpillar has a long history in China. The company
sold its first products there in 1975 and opened an office
in Beijing in 1978. Beijing is home to Caterpillar's
marketing headquarters for China, and it is also the
headquarters for Cat China Financial Leasing.    

    In the 1980s, Caterpillar launched technology transfer
agreements with Chinese manufacturers who began building
Caterpillar licensed products. Caterpillar's expansion in
China accelerated in the early 1990s with the establishment
of a more aggressive local production strategy.  Today,
Caterpillar operates 13 facilities -- both joint venture
and wholly owned businesses -- which, together with its
network of independent Caterpillar dealers, offer customers
in China the best-in-class products, services and support
that have made it a global leader.

    About Caterpillar

    For more than 80 years, Caterpillar Inc. has been
building the world's infrastructure and, in partnership
with Cat dealers, is driving positive and sustainable
change on every continent. With 2005 sales and revenues of 
$36.339 billion, Caterpillar is the world's leading
manufacturer of construction and mining equipment, diesel
and natural gas engines and industrial gas turbines.  

    About Caterpillar Logistics Services, Inc.

    Caterpillar Logistics Services, Inc. provides
world-class supply chain solutions and services to its
parent company, Caterpillar Inc., and more than 60 other
leading corporations throughout the world.  Caterpillar
Logistics operates more than 100 offices and facilities in
25 countries on six continents.  

    For more information, please contact:

     Jim Dugan, 
     Caterpillar Corporate Public Affairs
     Tel:    [phone]
     Email:  [e-mail]

SOURCE  Caterpillar Inc.