REMAN ENGINE PRODUCT LINE ADDITION: REMANUFACTURED 3408 ; 3412 ENGINES FOR OFF-HIGHWAY TRUCKS Caterpillar

Caterpillar announces Remanufactured 3408 and 3412 engines for three models of off highway
trucks. These products are intended to supplement dealer rebuild capability with
complete engine repair alternatives that can be used as either back-up or primary solutions.
Detail of the offerings is listed in the following table:

Reman engine 0R3966 is built to reference engine arrangement 131-4876 which was Tier I
certified and will produce emissions typical of the reference engine.

Reman engines come fully assembled and dyno-tested. These engines include hydraulic or
transmission oil coolers as appropriate and an air compressor. The rear engine-mounting
hardware, flywheel, alternator, fan drive, and associated wiring must be reused from the core
engine or purchased separately. Each Reman engine arrangement can also replace its
associated acceptable core part numbers (listed below) with minimal exchange of parts.

Caterpillar?s cleaning, inspection and remanufacturing specifications provide the best
possible value for our customers.

Following are the only acceptable cores for each Reman engine:

All engines returned as cores must meet the core acceptance guidelines as identified in the
"Core Acceptance Criteria", SELD0231 which is under development at this time and due for
publication later this year. In the interim, reference SELD0019 with the following additions:

? The engine must "bar over".
? There is a core return time limit as described in the section below.

Also see SELD0020 "Engine Check List".
Please refer to the Caterpillar Core Management Information System (CMIS 2) Parts
Information application describing all Reman part/CAF and related information. Also refer
to other CMIS 2 inquiry applications such as Customer Profile, Inspection Reason Codes,
Inspection Line Inquiry, Add Charge Information, Entitlement Activity, Entitlement Inquiry,
CCR Inquiry, CCR Entry, Shipment Processing; Process Packaging Grief; and Reporting to
properly manage core returns and monitor inspection performance. This information will be
available to all dealers worldwide after your CMIS 2 conversion date. In the meantime,
please continue to use the current CMIS Entitlement Parts Inquiry Screen describing the list
of parts in a Core Acceptability Family (CAF) and related part number detail.

If you have any questions regarding core return processing, feel free to call Corinth toll free
at (800) 537-2928.

The current Major Component Core Attrition Policy will be used for part numbers within the
ECA and ECB Core Acceptability Family (CAF's) because of the application of these
products.

The appropriate core attrition date is assigned at the time of invoicing. For the purpose of
core entitlement aging, the clock starts on the date the engine is invoiced to the dealer and
stops on the date the core is reported in transit to Cat by entering a core credit request (CCR)
into CMIS.

The purpose of the time limit is not to withhold core refunds, but to encourage the return of
cores that are required to support the program.

Any cores returned in excess of entitlements can earn only direct purchase price if a direct
purchase program is active at that time. Direct purchase prices are normally significantly
less than current core deposit prices.

Please refer to the appropriate Caterpillar warranty statement.

For assistance with technical questions, call the Peoria Reman Customer Satisfaction Hot Line
also toll free at (888) 88-REMAN or use our E-mail address--Reman_Help@cat.com.

RJ Williams
Remanufactured Products Group
LC2148 ? (309) 494-1245