By Melissa HucalThe last thing a sensitive forest

ecosystem needs is more damagehampering its recovery following asevere storm. That’s why a safetyconscious, environmentally soundrestoration and reforestation planhas called on Caterpillar forestrymachines to help restore one ofCanada’s most-popular nationallandmarks with minimal impact.

Two Caterpillar log loaders—a330D FM and a 324D FM—donatedby Finning (Canada) and Caterpillarare assisting in a significantrestoration program at StanleyPark in Vancouver, BritishColumbia. A major windstorm inDecember 2006 leveled 20 percentof the park’s forested areas,accounting for more than 10,000trees either uprooted, snapped inhalf, or damaged severely.

Because damage sustained bythe park was discovered topresent potential safety risks toboth visitors and the environment,including weakened cliffs and theincreased risk of fires caused bymassive debris, the Stanley ParkBoard created a plan to restore thedamaged forest areas. Althoughthere are no quick fixes to restorea forest, one of the first steps inany recovery plan is to removefallen forest timber, a task the Catmachines are perfectly preparedto undertake.

“In a sense, the machines aredoing what they would do in anormal forestry application, whichis heavy lifting,” said MikeDickenson, of North AmericaCommercial Division’s Canadian

District Office. “Except this issalvage work which is not focusedon production but rather on carefulmovement and placement of thetimber.”

According to Dickenson, theversatility and design of thesemachines made them the rightchoice for the job. By design, theloaders operate with minimalenvironmental impact. The trackedmachines tread lightly on theforest, in fact, the 80,000-pound324D FM operates with a groundpressure similar to a 220-poundperson walking through the park.The reach and 360-degree turningability of the loaders also allow forminimal ground disruption duringforestry operations.

The ability to lift, swing, andplace the trees and logs in specificareas is important for therestoration of the park, accordingto Jake Jacobsen of NACD ForestMachines. “If the log loaderscouldn’t be used, the trees wouldhave to be dragged.” If dragged,Jacobsen explained, the salvagedtimber could further damagepotentially usable wood or damagethe root systems of remainingtrees. Dragging would also hinderthe ability of newly planted trees toestablish themselves, almostnegating the positive restorationefforts.

“This is an important recoveryeffort in Canada’s largest forestryprovince,” said Finning Canada’sIndustry Marketing Manager forForestry Brian Mulvihill. “Beingable to help with the recoveryeffort is a great opportunity to

show how Caterpillar and Finning are committed to bothenvironmentally responsiblesolutions and the communities in which we operate.”

Finning and Caterpillar donatedthe loaders for a maximum of 200

hours of operating time permachine. The donation alsoincludes insurance and laborrequired for service work on themachines. The

machines will be in service overthe next few months in the largestdamaged areas.

S E P T E M B E R 2 0 0 7

C O N N E C T I N G O U R G L O B A L C A T E R P I L L A R F A M I L Y T O D A Y

By Jennifer TofanelliEven though Gail

Fosler grew upsurrounded by lathes,drill presses and handtools, it surprised herfather when sheannounced her desireto attend college andstudy engineering.“Back then, it just wasn’tsomething women did,” saidFosler as she presented at thePontiac Fuel Systems facilityduring a recent employee event.

Pontiac’s Diversity Team hostedFosler, the sole female member ofCaterpillar’s board of directors,

and executivevice presidentand chiefeconomist of theConference Board,the world’s leadingresearch andbusiness membershiporganization. Foslervisited the plant,participated in a

shop floor tour, and met withemployees as she experiencedfirsthand why the Caterpillarfacility in Pontiac, Illinois, is knownas a world-class manufacturingplant.

Fosler’s visit was part of a

yearlong diversity effort by Pontiacto reach out to employees throughmentoring opportunities,engagement activities, and otherevents involving different peoplewith different backgrounds andvarious roles in support of TeamCaterpillar.

Fosler, named as one of the“most accurate” economicforecasters in the world by TheWall Street Journal, captivatedemployees with her insights intoour current economy, Caterpillaras a global player, and how weare working to meet the bold goalsof Vision 2020. “I’ve always beenimpressed with how Caterpillar

has put such a highpriority on creating aculture that is veryaccepting andnurturing of a globalcompany,” saidFosler.

In terms of diversity andinclusion, Fosler has used her ownlife lessons to stay mindful of thebenefits that diversity can offer not only to individuals, but toinstitutions, businesses andgovernments as well.

During her speech, Fosler talkedabout how businesses and citizensalike have to embrace the fact thatwe’re moving toward a borderless

society. Once people identifyopportunity instead of conflictwhen faced with diversity, thensustainable global economicgrowth will follow.

“More and more people areliving and working in a countryother than their place of birth,”said Fosler. She said this type of

Cat Forestry Machines Helping Restore A Canadian Treasure

F O S L E R C A P T I V A T E S P O N T I A C A U D I E N C E

Cat Board Member Shares Insights, Wisdom, World

Continued on page 2

Gail Fosler

Scale of the operation can be seen in thesize of the damaged timber being cleared.

Cat board member Gail Fosler took time to tour thePontiac facility and learn more about fuel systems.

With its low ground pressure and ability to handle heavy loads safely, the 324D and 330D Forestry Machines were a perfectfit for reclaiming a damaged Canadian forest. Cat and Finning of Canada donated the machines for the project.

By Kitty RyanThis month marks the fourth anniversary

of the 6 Sigma Strategic ImprovementProject (SIP) devoted to Caterpillar’s mostimportant responsibility—employee safety.The Safety SIP has led to a host ofinitiatives that have produced impressiveresults in the company’s two top-tiermetrics used to track safety performance:Recordable Injury Frequency (RIF) and LostTime Case Frequency Rate (LTCFR).

Since the Safety SIP’s deploymentthroughout the enterprise in2003, RIF, which is calculatedfrom the number of work-related injuries requiringmedical treatment, hasimproved by 63 percent. LTCFR,measuring the number ofinjuries that actually result inlost workdays, has improved by77 percent.

“These performance figuresmean we’ve cut injuries by wellover half since Caterpillar deployed theSafety SIP,” said Corporate Safety ManagerAndrew Schneider. “These improvementsare even more remarkable when youconsider that thousands of new hires havejoined the company during that time. Newhires historically incur injuries at a higherrate than veteran employees.”

The pace of the safety improvement hasbeen dramatic too—nearly 24 percent peryear at Caterpillar. Compared to othercompanies considered world class, safetyperformance typically improves about 12percent annually.

“Caterpillar set extremely aggressive

goals in 2003 and updated them in 2005 withthe rollout of Vision 2020 to drive even moreimprovement,” Schneider said. “We’ve gota line of sight to meeting them by 2010. Infact, Caterpillar has already surpassed afew of our benchmarked companies in RIFimprovement, and we’re on our way toworld-class safety performance.

“Improvements like these don’t happen bymerely talking about safety. They representa great deal of hard work and dedication byour people. In all of our facilities, employees

have embraced a variety of Safety SIPrelated activities, from employee safetytraining and awareness programs toparticipating in value streamtransformations and 6 Sigma rapidimprovement workshops. This SIP hastouched absolutely everyone at Caterpillarand every facility has improved its safetyperformance.”

So far this year, 121 facilities havereported zero injuries. The facilities cover awide spectrum of work areas, includingproduct and component manufacturing,logistics and offices. According to Directorof Social Responsibility Jody Howard, the

diversity of the jobs performed in thosefacilities demonstrates that Caterpillarfacilities can achieve the company’sultimate goal of zero injuries.

Howard cited the Mossville Engine Center(consisting of buildings VV, BB and DD inMossville, Illinois) and the skid steer framefabrication facility in Torreon, Mexico, asoutstanding examples of how focusingattention on safety issues can improve afacility’s safety performance. Both facilitieswere on—and have since been removedfrom—the company’s safety watch list,which was established to monitor facilitieswith the highest number of injuries.

“Even with a workforce of nearly 3,000employees producing large engines,Mossville has reported just two lost timeinjuries in the first half of this year,” Howardsaid. According to Howard, their RIF hasimproved 76 percent and their LTCFR hasimproved 93 percent since 2003. Torreon’s2,700 employees have shown equallyimpressive safety improvements, going from12.62 RIF in 2003 to 1.97 today and an LTCFRback then of 9.04 to just 0.45 now. “Bothfacilities have proven that dramaticturnarounds are possible,” said Howard.

Schneider said improvements like theseresult from a combination of differentactivities and initiatives. “Mossville andTorreon highlight what can happen whenfacilities aggressively implement the 6 Sigma Safety SIP, including Vision Zeroand the full suite of tools Caterpillar hasdeveloped for implementing an effectivesafety program,” he said. “Along with safetymeasures they already followed, amongmany other activities underway, facilitiesthroughout the enterprise are using thetools to proactively look for and eliminatehazards, provide safety training forsupervisors and employees, investigateinjuries, eliminate their root causes, andreduce ergonomic risk.”

Approximately one-third of reportedinjuries at Caterpillar stem from ergonomichazards, which Schneider said is the reasonCaterpillar chartered a new ErgonomicsExcellence 6 Sigma SIP as one of only twoSIPs introduced this year. The SIP’s goal isto eliminate two-thirds of all ergonomicinjuries by 2010.

“The Safety SIP has galvanized our entireorganization. It has defined the kind ofcompany we want to be in terms of safety.The metrics and targets established by theSIP are a rallying point. They tell everyonewhat we want to accomplish—and workingtogether we are getting there,” Schneidersaid. “We anticipate the ErgonomicsExcellence SIP will experience similarsuccess when it’s fully developed anddeployed.”

Page 2

EditorJim Angell

Design DirectorCarol Rest

Contributing PhotographersMike Dickerson, Jim Dugan,

Bert Heijligers, Jackie Lam, Rebecca May

®

An equal opportunity employer

Contributing WritersLindsey Birkel, Meggy Dahler, Jim Dugan,

Martin de Haas, Melissa Hucal, Ashley Hunt, Mark Lesiter, Rebecca May, Jeanne Nickerson,

Amanda Schmoldt, Jennifer Tofanelli

Subscription ServicesTo make an address change send an e-mail to

Cat_Folks@cat.com or call 309-675-4388.

Produced byCaterpillar Inc.

Corporate Public Affairs A department of Human Services Division

100 NE. Adams, Peoria, IL 61629-1425If you have ideas for stories or submissions that

you’d like to see in upcoming issues, please contactJim Angell

Phone: 309-675-8448 or E-mail:Cat_Folks@cat.com

Visit us on the intranet at Cat @work.

PUBLISHED FOR CATERPILLAR PEOPLE SINCE 1950.

P R I N T E D O N 1 0 0 P E R C E N T R E C Y C L E D P A P E R

Our Strategy In ProgressEmployees Delivering Safety Improvements

From August 19-24,about 120 of Caterpillar’stop leaders gathered forour annual StrategicReview Conference(SRC). The theme for this

intense week of meetings was “Delivering theCommitment,” and our main focus was on relentlessexecution to nail our 2010 strategic goals. We heard fromcustomers, dealers, suppliers and other business leaders—and most important, had an open, honest dialogue with oneanother about our progress, challenges and path forward.Here’s the message I delivered to SRC attendees about thestate of Caterpillar’s business:

The Good News• The global economy is strong, particularly emerging

markets and key sectors important for our business.• We have the most extensive product line and global

footprint in our industry.• Our “portfolio” of businesses is attractive to customers

and investors.• We have a strong balance sheet and good cash flow,

which enable investment in our future.

The Bad News• In too many cases, our quality and delivery performance

falls short of customer expectations and our own goals.This negatively impacts our reputation and must beaddressed with a greater sense of urgency!

• In some cases, our competitors are more profitable thanwe are, which means they can invest more in researchand new product development.

• We need to expand our capacity significantly to realizeour projected growth opportunity.

• We are short of people skills in critically important areas,such as manufacturing engineers.

The Great News• We can fix the “bad news” issues—they’re within

our control!• We have a clear strategy, Vision 2020, which gives

us a well-understood roadmap to an exciting future.• We are positioned to win. Moving from “good to great”

is within our grasp.

So what happens now? Your leaders left SRC with asense of urgency to address the “bad news”—particularlythe issues that impact our customers. They also made a

commitment to share what they learned during SRC withyou. In the next month or so, you’ll take part in a strategyupdate meeting where your leaders will explain theimportance of relentless execution in the areas of people,quality, velocity and cost. You’ll hear about the progresswe’ve made so far, the work that remains to be done, howyou can contribute and what Caterpillar’s success meansfor each of us as individuals.

Relentless execution requires an uncommonly high levelof excitement and engagement from all of Team Caterpillar.We will achieve our 2010 goals only if we all understandwhere we are today, know what we must do to besuccessful tomorrow, share a vision for the future and arewilling to take the tough actions required to get there. I’mexcited about what lies ahead and look forward to joiningwith all of you to take Caterpillar to new levels ofperformance.

Delighted customers, highly engaged employees andenthusiastic shareholders—that’s what being part of awinning team feels like.

Welcome to the journey.

Jim Owens, Chairman and CEO

SRC 2007: Good, Bad And Great News For Caterpillar

On the cover: This month’s Cat family members shown left to right are Bin Han, Angela Guan, Kate Wang, andReddy Muralidhara, from CCI Beijing.

290

2003

2004

2006

.67

2007

2005

.302010

T A R G E T

4

3.5

3

2.5

2

1.5

1

.5

0

Y T D

Lost Time Case Frequency (LTCFR)

6.07

2003

4.99

2004

3.07

2006

2.27

2007

3.92

2005

1.19

2010

T A R G E T

8

7

6

5

4

3

2

1

0

Y T D

Recordable Injury Frequency (RIF)

1.96

1.291.05

behavior is an example of how ourborders are becoming less clear and ournetworks are spanning the globe. TeamCaterpillar is a great example with Catoffering nearly 482 operations in 50countries with over half of our salesoutside the U.S.

As for Caterpillar in a $40 trillion globaleconomy with the upward trend in worldexporting; Fosler said Cat needs to keepdetailing how and why Caterpillar is partof that tremendous global growth andwhat we will need to do to stay in front ofthe curve. “There are specific challengesin the manufacturing industry,” saidFosler. “The cost competition is going tocontinue to play a major role in thesuccess of a global manufacturingorganization. Caterpillar may need to bemore globally competitive—not just haveinnovative products—but be globallycompetitive in cost structure.”

Continued from page 1 Cat Board Member Shares Insights

S E P T E M B E R 2 0 0 7

Chairman’sChairman’s Corner

Team Caterpillar has a proud history of supporting United Way in theirefforts. Through our annual Caterpillar Employees’ United Way Appeal(CEUWA), we continue to make a real difference in our communities,truly touching the lives of our fellow citizens and their families.

The Peoria-area drive will be launched on October 15. As in previousyears, campaign coordinators will be asking for volunteers to help formsteering committees. These committees will work closely withemployees at each work location to help answer any questions aboutcampaign mechanics, employee participation, and community impact.

“The Caterpillar Employees United Way Appeal represents acoordinated effort producing resources that will make a significantimpact in our communities where our employees live and work.Together, we have the power to bring about improvements that matter

most in our communities,” said Will Ball,Manager of Social Responsibility Initiatives.For the third year, Caterpillar will bematching—dollar-for-dollar—eachcontribution made via payroll deduction.

Please contact Rachel Bradford at 309-636-1503 or Bradford_Rachel_A@cat.comfor more information.

United Way MoscowEvery child deserves safety, shelter and

food to eat. Unfortunately, these basicneeds are not always met.

For example, according to UNICEF,700,000 Russian children reside inorphanages, and millions more arehomeless and do not know where theirnext meal will come from. The CaterpillarFoundation donated $20,000 to UnitedWay Moscow, which provides support formany of these children—giving themhope for a better tomorrow.

Page 3

Eldon BuckLPSD

30 years

Chuck BradleU.S. Operations

35 years

Joann FraserSystems+Processes

30 years

CONGRATULATIONS ON ACHIEVING A MAJOR CAREER MILESTONE.

Ronald SchoofCat Logistics

35 years

THA

NK YO

U FO

R YOU

R CON

TRIBU

TION

S.EN

JOY YO

UR RETIREM

ENT.

Denny HahnHeavy Constr. Mining

35 years

Mike BimmCat Logistics

40 years

Ronnie Bockler LPSD

30 years

Dave MooreU.S. Operations

35 years

Bob BellU.S. Operations

40 years

Terry Bryner LPSD

38 years

Linda Poston Cat Logistics

28 years

Kenny DayU.S. Operations

35 years

Christine LananSystems+Processes

35 years

Barb WalkerU.S. Operations

30 years

Randy PowellU.S. Operations

35 years

Gerry MotsingerSystems+Processes

35 years

Jeanne Buhs Cat Logistics

25 years

Dave OedewaldtU.S. Operations

35 years

Bill MurhpySystems+Processes

30 years

Jack BurnsU.S. Operations

40 years

Cliff CirilloLPSD

40 years

Jack Chism LSPD

35 years

Shirley Harris LPSD

29 years

John Hulslander LPSD

30 years

John KearfottU.S. Operations

35 years

Roy NicholsonU.S. Operations

38 years

Steve SchraderSystems+Processes

30 years

Phil SchumacherU.S. Operations

35 years

Sue SpencerMPSD

25 years

Bobby TeagueU.S. Operations

35 years

Floyd Green MPSD

30 years

Steve W. MorseU.S. Operations

35 years

Keith BradshawSystems+Processes

30 years

Bill PrestonSystems+Processes

35 years

Eva CasasCat Logistics

42 years

Mike LamerSystems+Processes

30 years

Gerry BlunierU.S. Operations

35 years

Larry Ewins LPSD

29 years

Fred RenchU.S. Operations

35 years

John Kuester MPSD

30 years

David OpydLPSD

35 years

Joe BurgoniLPSD

35 years

Pam SchaeferLSPD

30 years

Retirees

Service Pins

Lino BramanteAsia Pacific

40 years

Iris ChongAsia Pacific

40 years

Carol De CottaAsia Pacific

35 years

Jeff CoverSystems+Processes

35 years

Graham LythgoeAsia Pacific

35 years

Bart SimpsonAsia Pacific

25 years

Learning is one of the key metrics for the PEOPLE Critical SuccessFactor (CSF) in Caterpillar’s enterprise strategy and is measured in partthrough the Learning and Development Index in the Employee OpinionSurvey (EOS). For the second year, Caterpillar University is naming Best Practice winners in the EOS Learning and Development Index.

As part of the EOS process, Caterpillar’s divisions are divided intothree categories: operations, marketing, and service. Best Practicewinners are the three divisions in each category with the highestLearning and Development and Engagement Index scores.

2006 Best Practice WinnersOperationsAsia Pacific Division Operations—Rich Lavin and Helen WangRemanufacturing Division—Steve Fisher and Lindsey BirkelLatin America Division Operations—Tom Gales and Marvin Matamoros

MarketingGlobal Mining Division—Chris Curfman and Cindy EisenbarthAsia Pacific Division Marketing—Rod Beeler and Don Da SaroNorth American Commercial Division—Bill Mayo and Jean Moore

ServiceCorporate Auditing and Compliance Division—Ali Bahaj and

Nancy LamportGlobal Finance & Strategic Support Division—Dave Burritt

and Annette AppelLegal Services Division—Jim Buda and Tom Zwicky

The Learning and Development Index Best Practice awards highlightthe divisions whose employees acknowledge that time and/or money isinvested in their professional growth and development and believe thatthey have good career opportunities at the company. They demonstrateCaterpillar’s commitment to investment in developing people and toheighten employees’ awareness of career possibilities with thecompany.

Cat University conducts studies with the winning divisions to identifylearning and development best practices and create case studies tohelp other business units replicate and adapt learning practices thatbetter meet their learning and development needs.

Please contact Fred Goh at 309-675-1485 or Goh_Fredrick@cat.comfor more information.

Learning And Development IndexBest Practice Winners Announced

Peoria Area United Way AppealBegins October 15

S E P T E M B E R 2 0 0 7

Page 5Page 4

Staff ReportSafety has always been a priority

for Caterpillar. Our Values in Actionmake this commitment clear. On the strength of the outstandingimprovements in workplace safety,Cat is now turning its attention toour customers—those who work in,on, and around Cat equipment.

Based on the recommendationsof a 6 Sigma Strategic ImprovementProject (SIP), Cat launched aninitiative this year to establishCaterpillar as a global leader forsafety of people in, on, and aroundour products. The specific focuswas to meet customer needs forsafe practices, materials, training,

and equipment.

New Web Site LaunchedIn response to this SIP, the

Product Safety and EngineeringServices (PSES) Department of theTechnology & Solutions Division(T&SD) identified a critical gap inthe delivery of safety information toCat customers. PSES respondedwith a project to develop acustomer-facing web site to providesafety information to anyone whointeracts with Caterpillar equipmentanywhere in the world.

“Developing the site was verymuch a Team Caterpillar effort,”noted Kevin Brennan, seniorconsultant with Customer SafetyServices. “Everyone involvedrecognized the importance of whatwe were trying to achieve.”

Chairman Jim Owens officiallylaunched SAFETY.CAT.COMTM onJune 5, 2007, by cutting a virtual redribbon on the homepage. “This website is an outstanding addition to the line of services Cat offerscustomers,” said Owens. “This is

about being a goodcorporate citizen—it'sthe right thing to do."

SAFETY.CAT.COMreinforces safetymessages found in thecompany’s operation andmaintenance manuals. Itincludes excerpts from the manualsas well as toolbox talks, videos ofwalk-around inspections, andoperating tips.

The site is designed to be the on-line “go-to” source for customers to obtain safety information anddemonstrates Caterpillar’sleadership in all aspects of safetybest practices.

Measuring SuccessIn its first two months,

SAFETY.CAT.COM has had over150,000 hits. And the site is beingupdated and refined continually inresponse to user feedback. “Thedata we’ve been able to gather fromthe web site and from our

continuing research with ourexternal partners has really openedour eyes to the level of need thatexists in the industry,” said T&SDDirector Cameron Ferguson ofProduct Safety and EngineeringServices. “Caterpillar has anopportunity to differentiate again bydeveloping and implementing acompany-wide safety strategy forour customers and bringing their

voice on safety into product design.” With the addition of

SAFETY.CAT.COM to Caterpillar’sbest practices, the future is brightfor safety inside and outside ofCaterpillar. Product Safety andEngineering Services is setting aclear path to achieve their mission:Safely home. Everyone. Every day.

New Customer Care Center Big Win For Peruvian DealerStaff Report

Challenged to increase customer marketshare and establish the Caterpillar brand asthe market leader, management at Cat dealerUnimaq developed, with help from LatinAmerica Commercial Division (LACD) GeneralConstruction Distribution team, a new strategybased on providing “Integrated Solutions” inthe areas of new equipment sales, productsupport, and rental. Implementation startedwith the creation of the first customer carecenter for General Construction (GC) andRental Store operations in Latin America.

Unimaq’s efforts to create a customer carecenter were driven by concerns over phonecall assistance and overall customersatisfaction. To address the issue, Unimaq’sGeneral Manager Oscar Rubio created a 6 Sigma team comprising members from LACDMarketing Services, GC Distribution, and theSantiago District Office to work out the detailsof such a facility and deliver what customersexpected from a customer care center.

“Before the improvement in the process, two individuals handled all the calls thentransferred the calls to different areas of the

company. The large number of calls and thediversity of the same made it difficult toproperly route the caller to the relevant area,”explained Victor Hugo Rivadeneira, UnimaqBlack Belt and process owner. “Today, afterthe implementation of the call center, there arefour specialized teams that include Rental,Equipment, Parts, and Service which take calls pertaining to his or her specialty. Thisprocedure has significantly reduced the loss of calls. Calls are now properly passed on tothe correct person identified.”

The center will provide support to all sales

departments in the dealership (rental,equipment sales, parts sales, and the service shop).

New procedures were also introduced toimprove call handling, follow up, measurementmethodologies, and service mentalitydoctrines. All sales personnel including callagents, salespeople, and sales managers weretrained and prepared to assume the newchallenge of improving Unimaq’s customerexperience and add value to the dealer’sproduct and services.

Early reports from customers are indicatingthat the new center is a big advantage overthe old system for getting thingsaccomplished.

“Today, I called the Unimaq Cat RentalStore and although I did not reach therepresentative I wanted because he wasassisting another customer on a telephonecall, another person answered my calldirectly and fulfilled my needs within twominutes,” Cat customer Luz Cuetor ofFerreyros ICA said. “It no longer takes 30minutes as it had in the past.”

Customer Fidel Huachahuanqui, anengineer with Gloria S.A., concurs with

Cueto’s experience. “I feel that the attention ofthe Unimaq Cat Rental Store has changedconsiderably. I congratulate the lady thathandled my call and immediately gave me asolution to my request.”

The project team revised the roles andresponsibilities of sales support staff to embedthe importance of daily customer care centersupport activities. As a result, the salesdepartment is fully integrated with the center.The sales support staff can now take fullbenefit of the center to provide improvedservice for customers.

“Considering there are a limited number ofstaff resources in the general constructionarea, this process will contribute to deliveringthe customer support solutions the dealer’smanagement and, of course, the customers areexpecting from the dealer’s sales force,” saidProcess Consultant Miguel Villamil of LACDMarketing and Services.

The new methodology experiences andlessons learned from this project will be usefulas the Marketing Services and GC Distributionteams replicate this project in subsequentGeneral Construction strategy implementationthroughout Latin America and the Caribbean.

S A F E T Y . C A T . C O M T M

Focus On Safety In, On, And Around Cat Equipment

Foundation Gift Helps Indonesian Students Learn ScienceBy Mark Lasiter

A recent contribution from the CaterpillarFoundation is helping high school students inBanda Aceh, Indonesia, experience science in

a better learningenvironment.

Cat

joined a host of individual donors andcorporate organizations in supporting SyiahKuala University Laboratory School, a neweducational facility built in the wake of thedevastating tsunami in late 2004. Thefoundation donated $25,000 toward thepurchase of new science laboratoryequipment, materials, and other items needed

to assist in the school’s educational efforts.In addition, Asia Pacific Power

Systems and Indonesian Catdealer PT Trakindo

Utama

donated a new 3456 stand-by generator setvalued at $50,000 to the school.

The laboratory school—a joint effort of theSyiah Kuala University, the United StatesIndonesia Society (USINDO) and theSampoerna Foundation—is one of the fewhigh schools in the country that addresses theobjectives the Badan Rehabilitasi danRekonstruksi (Board for Rehabilitation andReconstruction) has for restoring andimproving Indonesia’s education sector. Thefacility is expected to be a model of high-quality education in the country, withgraduates being better prepared to enter the university.

Representatives from Trakindoattended the school’s grand

opening on July 27.Located on the

university

campus, the facility features a new sciencelab, 10 Internet-connected classrooms, library,multi-purpose hall, cafeteria, and space forfaculty and staff to meet and relax. The firstclass includes 106 students out of more than600 applicants. Additional classes will beadded annually for the next several years.

“The diverse group of students selected forthe first class are a truereflection of the community,”said Margaret Sullivan, theschool’s project coordinator.“We have come a long way intwo years, and we have ourproject sponsors to thank fortheir piece of it. This school is atrue achievement in which wecan all take pride.”

Indonesia is integral toCaterpillar’s business in AsiaPacific. Jakarta is home to oneof Asia Pacific

Marketing’s district offices, employing 25people; and P.T. Natra Raya, an Asia PacificOperations facility in nearby Cileungsi, ishome to some 260 employees. The localdealer, Trakindo Utama, has approximately7,000 employees at more than 50 brancheslocated throughout the country.

“This school is a trueachievement in which wecan all take pride.”—Margaret Sullivan, Syiah Kuala University LaboratorySchool project coordinatorThe school, shown under construction, opened July 27 with an enrollment of 106 students for its first class.

The school principal (left) with her staff at the new school

Peruvian dealer Unimaq is seeing increased customer satisfaction with its new customer care center.

Banda Aceh

B A N D A A C E H , I N D O N E S I A

Present for the launch are (L-R): CEO Jim Owens; Cameron Ferguson, T&SD Director, PSES; Kevin Brennan, Senior Consultant, CustomerSafety Services; Dave Hudson, Manager, Customer Safety Services; Phil Rixstine, Black Belt, Customer Safety Services.

CEO Jim Owens cuts a “virtual” ribbon to launch the new web site.

Banda Aceh

S E P T E M B E R 2 0 0 7 S E P T E M B E R 2 0 0 7

Safely home. Everyone. Every day.Customers are recognizing Caterpillar as a global leader in the safety

of people in, on, and around our products by changing the processesthat drive the way Cat works and the deliverables that Cat produces.We will accomplish these goals by providing safety-related productsand services and by driving prime-product safety enhancements.

Facility Spotlight

Caterpillar RemanufacturingServices Shrewsbury, U.K.

CatFacts

Page 6

3000th Excavator Marks Grenoble Milestone By Maarten de Haas

The 3000th wheeledexcavator from Grenoble waspresented to its new owner, aZeppelin customer, June 21,during official hand-overceremonies at the facility.Members of the Grenoble plant,the Caterpillar wheeledhydraulic excavator productgroup, as well as the Munichdistrict office and Zeppelin alsotook part in the festivities.

Reaching the 3000-machinemilestone took the Grenoblefacility less than two years.Production began in September 2005.

Cat customer and proudowner of the new machine,Dresdner Industrie- undWohnungsbaugesellschaftmbH's, chose Cat because ofthe excellent reputation of the

product, service provided by theZeppelin dealer, and theperformance it has experiencedwith other Cat wheeledexcavators. This is the fourthCaterpillar wheeled excavatorin the customer’s fleet.

The day before the hand overof this machine to the customer,

Caterpillar CEO Jim Owens,EAME Operations VicePresident Mike Baunton, andDirector General for CaterpillarFrance Tom Bluth conducted afinal inspection of the machineand congratulated employeeson this significant event.

The team at the CaterpillarRemanufacturing facility inShrewsbury, United Kingdom,has taken the Europeanmarket by storm in just afew short years, providing

sustainable solutions for Caterpillarand other manufacturing customers.

Shrewsbury provides a variety of remanufacturing servicesthat include contract services in logistics for purchasing,kitting, core receiving, inspection, and repackaging. It alsomarkets its manufacturing services to customers who needShrewsbury’s remanufacturing capabilities in assembly, testing,painting, machining, and/or inspection.

Even major European mediahas noticed the good work ofthe Shrewsbury team. “Heftyprofit margins are the maindriver of Caterpillar'senthusiasm forremanufacturing and itsongoing expansion intoEurope,” said Time magazinein its July 12 Europeanedition. “But Reman’spractitioners also relish thechallenge of giving clapped-out parts new leases on life.”

The article captured the Shrewsbury team well, commentedFacility Manager Peter Roberts. “We have an enthusiastic

group, ready to breathe newlife into the parts and enginesthat make progress possibleevery day.”

Shrewsbury employs over 250 people andremanufactures 35,000parts per year, with sales inexcess of $73 million. It is aClass A facility and is ISO9001 certified.

Shrewsbury Timeline

This facility was established in 1915 by Sentinel toproduce a wide range of mechanical products, includingsteam-driven trucks.

➤ In 1956, the facility was acquired by Rolls-RoyceLimited to produce four-, six-, and eight-cylinder dieselengines for military and commercial equipment.

➤ In 1984, Perkins acquired the site to increase productofferings in mid-size engines.

➤ In 1998, Caterpillar acquired Perkins.➤ In 2003, the facility joined Cat Reman—employing 367

full-time Cat and contract employees.

Staff ReportCaterpillar had the opportunity to

meet another member of the Bestfamily—this time it was Frank Bestfrom Columbus Junction, Iowa,great-grandson of Benjamin Best.Benjamin was the brother of DanielBest, founder of the BestManufacturing Company, and uncle toC. L. Best, founder of the C. L. BestTractor Co. and Caterpillar's first CEO.Best was in town to tour the facilitiesand see the legacy his family startedover 120 years ago.

Best, who is very interested in his family’s

heritage and a “huge genealogist,”began his day with a tour of the CatAdministration Building, then movedon to tour Building SS where hewitnessed the assembly and testingof track-type tractors. Best finishedthe day with a viewing of the 100Years On Tracks exhibit at theTrack Type Tractors’ visitor centerin East Peoria.

“I’ve always wanted to see thewhole thing,” Best said. “I’m very

curious about what is going on in Caterpillartoday. I know my family’s history, and I’ve alwayswanted to go see what’s happening today. ”

Frank Best

Great-Grandson of Benjamin Best

Best Visits Caterpillar

By Rebecca MayIt has been approximately

25 years since the first enginerolled off the assembly line atthe Lafayette Caterpillar facilityon Dec. 2, 1982. To recognizethis exciting milestone, theLafayette facility held aweeklong celebration from July30 through August 5 to expressits sincere thanks andappreciation to all past andcurrent employees.

Employees were treated toCat mementos and given theopportunity to participate in adifferent fun activity each day.Some of these special activitiesincluded wearing your oldestCat shirt, getting a free icecream treat, and daily raffles ofgift cards from local businesses.

The excitement built as theweek progressed, and on Friday,August 3, employees attendedall-employee meetings withspecial speakers including pastgeneral managers anddepartment heads and state andlocal dignitaries. The mayor,state senator, and staterepresentative attended thecelebration to express theirappreciation to employees.

The week of activitiesreached its peak on Sunday,August 5, when employees,retirees, and their families wereinvited to attend an on-site openhouse. Roughly 4,800 employeesand family members turned outfor the event that included food,music, carnival games, machinedisplays, a car and hobby show,shop tours, a petting zoo, family

pictures, dunk tank, and much more.

“It takes a skilled, dedicatedworkforce fully engaged toproduce such lasting qualityproducts. Caterpillar and theLafayette facility leadershipteam thanks each and everyemployee,” said GeneralManager Bruce Schuver.

Lafayette Celebrates 25 Years Of Operations

S E P T E M B E R 2 0 0 7

BusinessBriefsGUATELAMA—A new 385CL Mass

Excavator equipped with quick coupler,bucket, and ripper joined the production teamof Agregua in July. The newly acquiredmachine joinsAgregua’s 365CLME in mining basaltrock.

Comparable to aD11 rippingcapability, the new385CLME is now themain production tool for AgregadosGuatemala. The 30-second toolexchange time addsto its versatility andadaptability toconform with eitherthe bucket or ripperto the basalt depositpresentation.Agregua pioneeredthe use of large Catexcavators with the rip and load flexiblesystem in the production of aggregates in

Latin America. The great results achievedwith the 365CLME in the last three yearsconvinced the company to go even larger to a385CLME to increase production capacity.

“Thanks toGentrac’sprofessional supportand leadership inmarketing newproduction systemsfrom Cat, Agregua is at the leading edgeof production andcost efficiencies inLatin America,” saidAlex Franco, heavyconstruction marketprofessional inLACD. “Thanks tothe collaboration ofCat Work Tools,LACD is at theleading edge of ripand loadapplications with

excavators. Looking at the future, it is onlygoing to get better.”

New Mass Excavator Expands Ripper Role For Agregua

Page 7

ELKO, NV—Newmont MiningCorporation, one of the world’sleading gold producers, andCaterpillar Logistics Services, Inc.(Cat Logistics), a wholly ownedsubsidiary of Caterpillar Inc., signeda 10-year logistics servicesagreement August 1.

"Newmont recognizes theincreasing importance of improvedmaterial availability for theproductivity of our workforce,” saidNewmont Mining Corporation VicePresident of North AmericanOperations Brant Hinze. “CatLogistics’ expertise in providing anintegrated logistics solution willresult in better equipmentavailability, increased employeeproductivity, and lower inventorycarrying costs. This new partnershipwill streamline our supply chainprocess positioning Newmont at theforefront of the industry.”

As part of the agreement, CatLogistics will provide warehousing

and inventory managementservices, records accuracy, andtransportation management servicesfor a new 162,000-square-footlogistics center in Elko, Nevada. The facility will support Newmont’smining operations throughout north-central Nevada. The distributioncenter will employ about 40 peopleand will also incorporate the partsoperations of Cat dealer Cashman.

“This is an exciting opportunity toprovide an integrated logisticssolution to support Newmont’soperations,” said AmericasPresident Steve Larson of CaterpillarLogistics Services, Inc. “Weunderstand the positive impactsuperior logistics services can havein an industry where machineuptime is essential. We look forwardto working with the Newmont teamto implement this fully integratedsupply chain solution.“

Newmont And Cat Logistics Sign Agreement

BARTH, Germany—Caterpillar PowerGeneration Systems (CPGS) has beenselected to provide six 12CM32 medium-speed generator sets to produce 33megawatts (MW) of power at three of URPower GmbH’s vegetable oil-fueled plants,located on the Baltic Sea coast in Barth(Ostsee) and on the North Sea coast inCuxhaven, Germany.

“As our first biofuel project in Germany,the UR Power project represents anexciting step in Caterpillar PowerGeneration Systems’ ability to help makealternative energy a global reality andsupports Caterpillar’s strategic focus onsustainability,” said William J. Rohner, vicepresident of Caterpillar’s Electric Power

Division. “We eagerly anticipate work onsimilar alternative-fuel power projects inGermany and other regions of the world inthe near future.”

In addition to supplying biofuel-generatedgrid electricity under EEG (Germany’sRenewable Energy Act), the plants willrecover waste heat energy for localindustrial use. At the Barth site, therecovered heat will benefit greenhousesproducing the region’s famous “BartherTomaten” (tomatoes from Barth).

A leading specialist in German biofuelpower generation, UR Power offers asingle-source solution for the design,development, and operation of vegetableoil-fueled power plants. With a goal of

generating environmentallyfriendly, renewable energy froma variety of vegetable oils, URPower offers a uniqueunderstanding of vegetable oiltechnology as one of the mostsuccessful biofuel models intoday’s new energies sector.

Beyond equipmentspecification, UR Powercontracted CPGS for completepower plant system engineeringsupport and supervision of the installation.It includes CPGS’s assistance in developinga standard plant design for all future powerplant construction projects, thus enhancingcost, time, and ongoing maintenance

efficiencies.Power plant equipment deliveries are

scheduled for the end of 2007 and into thesecond quarter of 2008, with the plantsscheduled to go online during the latter half of 2008.

Cat Provides Biofuel Power Generation For German Firm

BEIJING, China—Repre-sentatives of Caterpillar Inc. werepleased to accompany JamesConnaughton, seniorenvironmental and naturalresources advisor to U.S.President George W. Bush, on hisrecent visit to the Sihe Coal Minein Jincheng City, Shanxi Province,China. Sihe is the world's largestcoal methane power plant andwill use 60 Caterpillar methane-gas-powered generator sets tocreate 120 megawatts of powerwhen fully operational.

Following the success of thisproject, Caterpillar has beenselected to provide an additional31 methane-gas-poweredgenerator sets to produce 54megawatts of power at the ChengZhuang and Mei Gan Shi coalmines in the same city in ShanxiProvince.

“The United States and othernations including China areworking together to set a long-

term global goal for reducinggreenhouse gases,” saidConnaughton, who was appointedby President Bush in 2001 to serveas the chairman of the Council onEnvironmental Quality. “Economicgrowth, energy security andclimate change must beaddressed in an integrated way.The Jincheng coal methane plantsare excellent examples of how toincrease energy use in anenvironmentally responsible way,”Connaughton added. “We hope toadvance more projects like thesethrough the Asia-PacificPartnership (APP) on CleanDevelopment and Climate, whichaddresses growing energydemand by advancing cleanenergy technology developmentand deployment."

The Shanxi Jincheng AnthraciteCoal Mining Group Co., Ltd. is theproject developer for the threecoal methane power plants.Caterpillar will work closely with

its dealer WesTrac China Limitedon product commissioning andon-going support for theseprojects.

Methane gas found in coalseams can be highly volatile and itis a major cause of undergroundexplosions. Historically, it hasbeen vented into the atmosphere.By capturing the previouslyvented methane gas andconverting it into electricity, theCaterpillar generator sets willsignificantly reduce greenhousegas emissions, improve minesafety and increase the capacityof the local power grid.

“This is a major step forward inChina's road to sustainabledevelopment and demonstratespositive bilateral trade relationsbetween the United States andChina,” said Stu Levenick,Caterpillar group president withresponsibility for Asia.

The 11th Five-Year Plan guidingChina’s development between

2006 and 2010 emphasizes thatbuilding a recyclable economy isan important way for China tobuild a resource-efficient andenvironment-friendly society, thusrealizing sustainable development.As part of the second StrategicEconomic Dialogue, the UnitedStates and China have agreed todevelop up to 15 large-scale coalmine methane utilization projectsin the next five years.

The 3500 series generators

used in these projects areproduced at Caterpillar’s LargeEngine Center in Lafayette,Indiana. “Caterpillar generatorsets have been producingelectricity around the world fornearly 70 years,” said William J.Rohner, vice president forCaterpillar’s Electric PowerDivision. “We are pleased to beinvolved with these newopportunities in China.”

Top White House Advisor On Environment Visits The World’s Largest Coal Methane Power Plant

The UR Power generator sets are similar to this installation at 11 feet high by 37 feet long and each unit weighing in excess

of 140,000 pounds.

U.S. Senior Environmental & Natural Resources Advisor James Connaughton learns more about Cat’s involvement with the coal methane power plant.

S E P T E M B E R 2 0 0 7

Page 8 © September 2007 Caterpillar Inc. Printed in U.S.A.

Mauricio Soler captures the honors of

winning stage nine.

Team Barloworld Rides In Tour de FranceStaff Report

When you think of Caterpillarand the Tour de France, the firstthing most people think is whatdid our machines construct for theTour. However, this year’s Tour marked the first time TeamBarloworld, sponsored by Catdealer Barloworld, was invited tothe prestigious Tour de Franceand it made sure Cat was alongfor the ride.

The team of 9 elite riderssported bright red and whiteuniforms with yellow and blacksleeves. On each shoulder sat the Caterpillar logo positioned for getting the word out thatBarloworld is a big part of thegrowth happening in Africa,Europe, and Russia.

“It‘s important to talk about oursponsor,” Team Manager ClaudioCorti said. “Barloworld is a SouthAfrican multi-national companythat is present in numerousEuropean and worldwide markets.

I’m very proud to have brought anAfrican sponsor into the highestlevel of cycling.”

Barloworld Equipment SouthAfrica celebrated 80 years as aCaterpillar dealer in July. It is alsothe Cat dealer in Botswana,Namibia, Spain, Portugal, Zambia,Malawi, Mozambique, Angola,Siberia, and the DemocraticRepublic of Congo (KatangaProvince).

Team Barloworld finished in15th place overall and scored twostage victories with MauricioSoler taking stage nine andsprinter Robbie Hunter winningstage 11. Soler also captured thetitle of “King of Mountains” and itspolka-dot jersey as the top riderduring the tour’s mountain stages.

The cyclists will be wearing thenew look uniforms throughout theremainder of the 2007 racing season.

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Team Barloworld rider Robbie Hunter during thefirst stage of the Tour de France in London, England.