Caterpillar and Finning Reach Agreement on Remanufacturing Services

 Caterpillar Expands Reach in Rail, Other Industrial Engine Component
                           Remanufacturing

PEORIA, Ill., March 29 /CNW/ -- Caterpillar Inc.
(NYSE: CAT) and Finning International Inc. (Finning) have announced that
Caterpillar and O.E.M. Remanufacturing Company Inc. (OEM Reman), a subsidiary
of Finning, have reached agreement for Caterpillar to acquire OEM Reman's rail
and non-Cat engine component remanufacturing business, together with related
work-in-progress and inventory.
In addition, Caterpillar and OEM Reman have agreed to enter into an
initial two-year agreement under which OEM Reman will provide remanufacturing
services to Caterpillar for these lines of business.  Caterpillar will provide
all sales and marketing functions and OEM Reman will perform the
remanufacturing work for the initial term of the agreement.
The transaction does not affect the remanufacturing work that OEM Reman
performs for Finning (Canada) on Cat branded equipment.  OEM Reman will
continue to perform remanufacturing services under a long-term contract for
Finning (Canada) in support of their customers in western Canada.
"This transaction demonstrates the confidence that Caterpillar has in
Finning as a business partner and in OEM Reman's ability to perform to
Caterpillar's stringent quality requirements and aggressive production targets
in a safe, cost-effective manner," said Doug Whitehead, President and CEO of
Finning International Inc.
"OEM Reman brings proven expertise in the remanufacture of industrial
components, and has a valued reputation in markets that we are well positioned
to serve," said Steve Fisher, Caterpillar vice president with responsibility
for remanufacturing.
Caterpillar, one of the world's largest remanufacturers, announced in 2004
that its remanufacturing group would offer its capabilities to Original
Equipment Manufacturers (OEMs) in other industries, including automotive and
industrial products.  Caterpillar has entered a number of strategic alliances
with OEMs and remanufacturers to expand its presence in external
remanufacturing markets.

About O.E.M. Remanufacturing Co.
OEM Reman is one of North America's most advanced engine and powertrain
component remanufacturing providers, serving the mining, rail, construction
and forestry sectors.  OEM Reman operates from a new, state-of-the-art 286,000
square foot facility located in Edmonton, Alberta.

About Finning International
Finning International Inc. is one of the world's largest Caterpillar
equipment dealers.  The Company sells, rents, finances and provides customer
support services for Caterpillar equipment and engines in Western Canada, the
U.K., and South America (Argentina, Bolivia, Chile and Uruguay).  Finning also
owns Hewden, the largest equipment rental business in Europe.  Headquartered
in Vancouver, British Columbia, Canada, Finning International Inc. is a widely
held, publicly traded corporation, listed on the Toronto Stock Exchange
(symbol FTT).  For additional information please visit our website at
http://www.finning.com .

About Caterpillar Inc.
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.  More information is available at
http://www.cat.com/ .