Caterpillar to Expand Remanufacturing Business With Acquisition of Certain Gremada...

Caterpillar to Expand Remanufacturing Business With Acquisition of Certain
Gremada Industries, Inc. Assets
Purchase will enhance product and service offerings and increase strategic
focus for remanufacturing in the mining and petroleum industries

PEORIA, Ill., June 16 /PRNewswire-FirstCall/ -- Caterpillar Inc.
(NYSE: CAT) and Gremada Industries, Inc. announced today that Caterpillar will
acquire certain assets of Gremada Industries.  The acquisition agreement was
signed on June 15, 2008, and the deal is expected to close upon completion of
legal and regulatory requirements.
    Gremada Industries is a leader in the processes of remanufacturing and
reclaiming metal parts and components used in transmissions, torque converters
and final drives.  Gremada provides service support for off-highway equipment
used in the mining and petroleum industries, and it has extensive experience
providing remanufacturing expertise for equipment used for petroleum drilling
applications.
    "With Caterpillar's leadership and extensive experience in the
remanufacturing, mining and petroleum industries, this acquisition is an ideal
strategic fit for our continued growth in our services businesses," said Steve
Fisher, Caterpillar vice president with responsibility for remanufacturing.
"By adding Gremada, we will increase our overall product and service offerings
for our existing customers while providing a platform for future growth
opportunities for Cat Reman.  Our competencies of core management and salvage
technology, leveraged with Gremada's process efficiency and remanufacturing
expertise, positions us well for future growth."
    Privately held Gremada is based in West Fargo, North Dakota, and has
another nearby primary location in Fargo, North Dakota.  The company has more
than 200 employees, who will become part of Caterpillar's Remanufacturing
Division following the closing of the deal.  Financial details of the
agreement are not being disclosed.
    "As a long-time supplier, we understand and appreciate Caterpillar's
commitment to quality and excellence," said Greg Butler, President and CEO of
Gremada Industries, Inc. "We are excited about the opportunities this
acquisition provides for our employees who will benefit from joining one of
the largest and best known companies in the world."
    The acquired businesses will join 16 other Caterpillar remanufacturing
facilities located in the United States, Mexico, Europe and Asia.  Caterpillar
is one of the largest remanufacturers, recycling more than 2 million pounds of
material annually.  It uses state-of-the-art remanufacturing technology to
recycle used products, such as engines and transmissions, into like-new
components.
    "The acquisition of Gremada Industries further strengthens Cat Reman's
position as the world's leading remanufacturer," said Doug Oberhelman,
Caterpillar group president. "It also provides added support to the mining and
petroleum industries, which are undergoing significant growth and capacity
expansion due to an increase in commodity prices and global demand for
commodities.  Around the world, Caterpillar and our dealers serve customers in
these industries by providing best-in-class products and support which means
more up-time in the field.  Applying additional discipline and focus in this
area will drive cost synergies as well as improved product quality and
support," Oberhelman added.
    For more than 80 years, Caterpillar Inc. has been making progress possible
and driving positive and sustainable change on every continent. With 2007
sales and revenues of $44.958 billion, Caterpillar is the world's leading
manufacturer of construction and mining equipment, diesel and natural gas
engines and industrial gas turbines. The company also is a leading services
provider through Caterpillar Financial Services, Caterpillar Remanufacturing
Services, Caterpillar Logistics Services and Progress Rail Services. 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 "will", "expect", "anticipate" 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 or interest
rates; political stability; market acceptance of the company's products and
services; significant changes in the competitive environment; epidemic
diseases; 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 Form 10-Q filed with the Securities and Exchange
Commission on  May 2, 2008. This filing is available on our website at
http://www.cat.com/secfilings. We do not undertake to update our
forward-looking statements.
SOURCE  Caterpillar Inc.

Jim Dugan, Corporate Public Affairs of Caterpillar Inc., office,
+1-309-494-4100, or mobile, +1-309-360-7311, Dugan_Jim@cat.com