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Trimble and Caterpillar Sign Agreement to Form Joint Venture For Machine Control Technologies 03.18.2002

Caterpillar Trimble Control Technologies LLC to begin operations in early April.

Trimble and Caterpillar Inc. today announced that they have reached a definitive agreement to form Caterpillar Trimble Control Technologies LLC. The joint venture, 50 percent owned by Trimble and 50 percent owned by Caterpillar, will develop the next generation of advanced electronic guidance and control products for earthmoving machines in the construction, mining and waste industries. Caterpillar and Trimble have successfully worked together for the past six years on a variety of machine control technology initiatives.

Caterpillar Trimble Control Technologies LLC will be based in Dayton, Ohio and is expected to begin operations on April 1, 2002. Mark Nichols, formerly the division vice president of Machine Control for Trimble's Engineering and Construction Division, will serve as general manager for the joint venture.

Under the terms of the agreement, Caterpillar will contribute cash and selected technology, and Trimble will contribute select existing machine control product technologies. Additionally, both companies have licensed patents and other intellectual property from their portfolios to the joint venture. The proprietary technologies will serve as the venture's foundation for product development and commercialization efforts. Trimble will be the source of Global Positioning System (GPS), laser, wireless communications, computing and software technologies. Utilizing these technologies, the venture will develop on-board systems that improve productivity and further modernize the construction and mining markets.

Initially, the venture will supply products to Trimble and Caterpillar. Each will market, distribute, service and support the products using their company's independent distribution channels. Caterpillar will offer products as a fully integrated, factory-installed option, while Trimble will continue to address the aftermarket with products for earthmoving machines through its global dealer channel.

Caterpillar and Trimble will be exhibiting at CONEXPO-CON/AGG 2002, the largest trade show in the Western Hemisphere for the construction, aggregates and ready mixed concrete industries, in Las Vegas from March 19-23. The companies will be highlighting machine control technology at both the Trimble and Caterpillar booths. For more information, visit

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