New Caterpillar Service Parts Center in Texas Kicks Off Network Modernization Plan

(Morton, Ill) - Building on the strength of a best-in-class global service parts distribution network, Caterpillar Logistics Services, Inc. (Cat Logistics), a wholly owned subsidiary of Caterpillar Inc. (NYSE: CAT), is announcing plans to open a new parts distribution center in Waco, Texas. The new facility marks the beginning of a multiyear expansion and enhancement of the Caterpillar service parts distribution network throughout North America.

The more than 500,000-square-foot facility will employ between 140 and 180 people, increase network capacity and provide primary aftermarket parts support to six Caterpillar dealers in North America. Once operational, the new facility will replace the smaller regional distribution centers in Dallas, Texas, and Kansas City, Missouri, while increasing total warehouse capacity. It will process dealer stock and emergency orders as well as inbound parts.

“We certainly recognize the significant value parts availability provides our end users,” said Bill Springer, Caterpillar vice president responsible for the Marketing and Product Support Division. “Therefore, this new parts distribution center will help Caterpillar and Cat dealers maintain our industry leadership by enabling quicker order-to-delivery time.”

Currently most parts are routed through a single global entry point in Morton, Illinois. Through this network modernization plan, the new Texas distribution center will also handle inbound processing of parts directly from suppliers. Services at existing Cat facilities in York, Pennsylvania, and Denver, Colorado, will be expanded to do the same. When complete, these process improvements will get parts on the shelf faster and improve Caterpillar’s ability to fill dealer orders.

“We are enhancing the Caterpillar parts distribution network to ensure we continue meeting the expectations of our dealers and customers in the years ahead. This demonstrates our ongoing commitment to product support excellence,” said Steve Larson, vice president of Caterpillar Inc. and chairman and president of Caterpillar Logistics Services, Inc. Groundbreaking for the new Waco parts distribution center is planned for the second quarter 2008, with operations expected to be underway in early 2009.