Caterpillar to Help Develop Remanufacturing Industry in China

Caterpillar to Help Develop Remanufacturing Industry in China

September 14, 2006

-- Company signs letter of intent with China's National Development and Reform Commission to develop and promote environmentally sustainable industry

    BEIJING, Sept. 14 /Xinhua-PRNewswire/ -- Caterpillar
Inc. (NYSE: CAT) and China's National Development and
Reform Commission (NDRC) have signed a letter of intent
through which Caterpillar and NDRC will promote the
development of China's remanufacturing industry.

    Caterpillar Group President Stu Levenick and NDRC
Resources Conservation & Environmental Protection
Department Director General Madame Zhao Jia Rong signed the
letter of intent at a ceremony held today at the Diaoyutai
State Guesthouse in Beijing.

    "Remanufacturing is a highly sophisticated form of
recycling that takes end-of-life components and turns them
into like-new products for a fraction of the cost,"
said Levenick.  "Our remanufacturing business is one
of the fastest growing parts of our company because this
technology helps our customers remain competitive and
promotes a sustainable environment by reducing waste and
the need for raw materials to make new parts."

    Madame Zhao Jia Rong said, "The letter of intent
signing lays a solid foundation to promote cooperation in
the area of remanufacturing.  It is beneficial for China to
learn the expertise of foreign countries and to promote the
development of the recycling economy."  
 
    As part of the letter of intent, Caterpillar will
provide expertise to assist NDRC and Chinese research
institutions in supporting the development of the
remanufacturing industry in China.  Caterpillar and NDRC
have also agreed to form a Joint Working Group on
Remanufacturing Programs to discuss matters related to the
remanufacturing cooperation program in detail and to
coordinate and promote further cooperation by both parties
in sustainable manufacturing and other areas.   
  
    Caterpillar Remanufacturing Services is the first
wholly owned foreign entity to receive a remanufacturing
license in China.  To support its Chinese customers,
dealers and other customers in the Asia Pacific region,
Caterpillar recently opened a regional remanufacturing
center in the Lingang Industrial Area in Shanghai.
	
    "We are proud to be a pioneer in this industry and
look forward to supporting China's 4R initiative: reduce,
reuse, recycle and remanufacture," said Steve Fisher,
Caterpillar vice president for remanufacturing. 
"Through our business model and with this letter of
intent, Caterpillar will support the Chinese government's
goal of achieving a sustainable economy based through
recycling." 

    With more than 30 years of experience, Caterpillar is a
global leader in remanufacturing technology.  In 2005,
customers from around the world returned 61.2 million kg
(135 million pounds) of components to Caterpillar
Remanufacturing Services.  Close to 70 percent of those 2.2
million end-of-life units were remanufactured to produce Cat
Reman products, with the remaining percentage recycled.

    For more than 80 years, Caterpillar Inc. has been
making progress possible and 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.
  More information is available at http://www.CAT.com/ .
 
    SAFE HARBOR 

    Certain statements in this release relate to future
events and expectations and as such constitute
forward-looking statements involving known and unknown
factors that may cause actual results of Caterpillar Inc.
to be different from those expressed or implied in the
forward-looking statements.  In this context, words such as
"expects," "anticipates,"
"intends," "plans,"
"believes," "seeks," "will"
or other similar words and phrases often identify
forward-looking statements made on behalf of Caterpillar. 
It is important to note that actual results of the company
may differ materially from those described or implied in
such forward-looking statements based on a number of
factors and uncertainties, including, but not limited to,
changes in economic conditions, currency exchange rates or
political stability; market acceptance of the company's
products and services; significant changes in the
competitive environment; changes in law, regulations and
tax rates; and other general economic, business and
financing conditions and factors described in more detail
in the company's filings with the Securities and Exchange
Commission, including the quarterly report filed on Form
10-Q with the Securities and Exchange Commission on August
2, 2006.  We do not undertake to update our forward-looking
statements.  

    For more information, please contact:

     Jim Dugan, 
     Government Relations & Corporate Affairs 
     Caterpillar (China) Investment Co., Ltd.
     Tel:    [phone]
     Mobile: [phone]
     Email:  [e-mail] 

SOURCE  Caterpillar Inc.