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Caterpillar expands electric power manufacturing capabilities in Newberry, S.C.

July 27, 2006 - Peoria, Ill. - Caterpillar's Newberry, S.C., facility is now manufacturing Caterpillar brand diesel generator sets in the 10-200 kW range. First off the line are the D25-D100 generator sets, and the XQ30-XQ100 rental packages, all powered by the Cat C3.3 and C4.4 engines.

The D125 -D175 generator sets, powered by the C6.6 engine will follow. With this expansion, Caterpillar is able to provide improved availability and lead times for this power range to customers in North America.

Caterpillar announced the opening of this new manufacturing facility in October of 2005 in response to heightened North American demand for generator sets in the 10-200 kW range."By producing smaller generator sets at the Newberry plant, Caterpillar is now better positioned to quickly respond to customer demand for electric power in North America," said William J. Rohner, vice president of Caterpillar Electric Power Division.

The D25 -D175 generator set models and the XQ30 -XQ100 rental packages, powered by the C3.3 to C6.6 engines, are all engineered for enhanced performance, lower emissions and reduced footprint. These models offer the following key benefits:

Superior fuel economy as a result of advancements in electronic fuel injection and the engine air management system

Optimized engine compatibility, improved electrical performance and increased power density

Low ownership costs as a result of increased service intervals, extended component life and proven low-load capability

U.S. EPA Tier 2, 3 or 4 certifications, as applicable by model

Significantly reduced noise emissions on all XQ rental models

In addition to the diesel-powered generator sets, the 10-100 kW natural gas-powered generator sets will continue to be assembled at the Newberry facility, meeting the needs of smaller retail operations, homes, farms and municipal authorities.

Caterpillar's Electric Power Division includes global design, packaging and marketing responsibilities for Caterpillar electric power generation products, including U.S. operations in Illinois, Indiana, Georgia and South Carolina and international operations in Northern Ireland, India, China and Brazil. The Electric Power Division includes products branded with the FG Wilson, Olympian and Caterpillar names.

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.

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