Progress Rail Services to Locate Assembly Operation in Sete Lagoas, Minas Gerais, Brazil

Progress Rail Services to Locate Assembly Operation in Sete Lagoas, Minas Gerais, Brazil

Progress Rail Services, a subsidiary of Caterpillar Inc., today announced the company's plans to locate a locomotive manufacturing facility in Sete Lagoas, in the state of Minas Gerais, Brazil, to serve the South American diesel-electric locomotive market.

Progress Rail has agreed to open the facility to better serve its Brazilian and South American customers, and will operate the facility through its subsidiary, MGE Equipamentos e Servicos Ferroviarios Ltda. (MGE). Progress Rail anticipates this project could create up to 600 jobs when at full capacity.

The company plans to make a significant investment to open and modernize the existing manufacturing plant in Sete Lagoas, in the state of Minas Gerais. The facility will assemble and manufacture Electro-Motive Diesel-branded locomotives in the 12,000 square meter space on a 100,000 square meter site. Electro-Motive Diesel Inc. is a subsidiary of Progress Rail Services, and a worldwide leader in locomotive technology with approximately 33,000 diesel-electric locomotives in operation globally.

"We are proud to announce the opening of this state-of-the-art facility, which will allow us to produce locomotives locally for our Brazilian customers, and also continue to provide quality products to our customers around the world," said Billy Ainsworth, president and chief executive officer of Progress Rail Services. "We believe the Sete Lagoas community, in the state of Minas Gerais and the country of Brazil, will offer our organization an exceptional location from which we will produce world-class locomotives."

About Progress Rail
Progress Rail Services, a wholly owned subsidiary of Caterpillar Inc., is a leading supplier of remanufactured locomotive and railcar products and services to the railroad industry, operating one of the most extensive rail service and supply networks in North America. We serve our customers through a network of more than 150 locations across the United States, Canada, Mexico, Brazil, Italy, Germany, and the United Kingdom, with more than 4,500 employees. Progress Rail Services is headquartered in Albertville, Alabama.

Through its acquisition of Electro-Motive Diesel, Progress Rail has expanded its network of global locations, furthering its commitment to providing industry-leading products and services. Founded in 1922, Electro-Motive Diesel is an original equipment manufacturer of diesel-electric locomotives. Headquartered in LaGrange, Illinois, EMD designs, manufactures and sells diesel-electric locomotives for all commercial railroad applications and is a global provider of diesel engines for marine propulsion, offshore and land-based oil well drilling rigs, and stationary power generation. The company is the only diesel-electric locomotive manufacturer to have produced more than 72,500 engines and has the largest installed base in both North America and worldwide. EMD also has an extensive aftermarket business offering replacement parts, maintenance solutions and a range of value-added services.

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About Caterpillar:

For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2010 sales and revenues of $42.588 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.

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