Solar Turbines Announces Caterpillar Power Generation Systems Organization

LAS VEGAS, NEVADA (December 9, 2003) --- Solar Turbines Incorporated, a wholly owned subsidiary of Caterpillar Inc., announced today at the Power Gen international Conference, that beginning January 1, 2004, Solar Turbines Incorporated (Solar) and Caterpillar International Power Systems (CIPS) will align to form Caterpillar Power Generation Systems (CPGS), a marketing organization representing two of the leading brands for 1-100 MW distributed generation applications. This organization will provide customers with an optimized solution by drawing from two proven technologies, Solar gas turbines and Caterpillar Motoren (CM) long-stroke, medium speed reciprocating engines. The organization will report through Solar Vice President, Greg Barr.

Caterpillar Power Generation Systems will represent both the Solar gas turbine and CM product brands for power generation applications, and will be responsible for the marketing, sales, product management and order fulfillment activities of both brands. The individual product organizations will provide engineering, manufacturing and packaging operations. Service will be provided for turbines and reciprocating engines respectively through Solar's Customer Services Organization and the Caterpillar Dealer Organization.

Solar Turbines products that will be marketed under the CPGS organization include the Saturn 20, Centaur 40 and 50, Mercury^TM 50, Tallus 60 and 70, Mars.90 and 100, and Titan 130 for power generation applications. They will continue to be sold through Solar's direct sales channel.

Caterpillar Motoren products that will be marketed under the CPGS organization include the medium speed reciprocating engine families CM20, CM25, CM32, GCM34 and CM43. These engine platform designs are based on proven heavy fuel experience and are ideal for developing areas where the quality and availability of fuel varies, yet the need for reliable electricity is imperative. The worldwide Caterpillar dealer network will continue to play a vital role in both the distribution and servicing of the CM product line.

Caterpillar Power Generation Systems will offer the electric power market a wide range of solutions that include engineered equipment, turnkey power plants, financing, operation and maintenance services and contract power arrangements. 'Solaris excited about this new relationship,' said Greg Barr, Vice President of Power Generation. 'By blending the best of both groups, we will be able to offer the right technology for the right application.'

Solar Turbines is a leading U.S. manufacturer and exporter of mid-range gas turbine engines and related equipment. More than 11,700 Solar gas turbine engines and turbomachinery systems are used on land and offshore in 92 nations for the production and transmission of crude oil, petroleum products and natural gas; generating electricity and thermal energy for a wide variety of industrial applications. These units comprise operating experience of over one billion hours. Solar Turbines is a wholly owned subsidiary of Caterpillar Inc., the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.