Asia PR News

SHANGHAI, March 31 /PRNewswire-AsiaNet/ –

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

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 support 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.

SOURCE: Caterpillar Inc.

CONTACT: Jim Dugan,
Caterpillar Corporate Public Affairs,
+1-309-675-5813,
dugan_jim@cat.com

Web site: http://www.CAT.com

(CAT)