Finning International Inc.
TSX : FTT

Finning International Inc.

March 29, 2006 09:30 ET

Finning and Caterpillar Reach Agreement on Remanufacturing Services

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2006) - Finning International Inc. ("Finning") (TSX:FTT) and Caterpillar Inc. ("Caterpillar") have announced that Caterpillar and O.E.M. Remanufacturing Company Inc. ("OEM Reman"), a subsidiary of Finning, have reached agreement for Caterpillar to acquire OEM Reman's railroad and non-Cat engine component remanufacturing business, together with related work-in-progress and inventory.

In addition, Caterpillar and OEM Reman have agreed to enter into an initial two-year agreement under which OEM Reman will provide remanufacturing services to Caterpillar for these lines of business. Caterpillar will provide all sales and marketing functions and OEM Reman will perform the remanufacturing work for the initial term of the agreement.

The transaction does not affect the remanufacturing work that OEM Reman performs for Finning (Canada) on Cat branded equipment. OEM Reman will continue to perform remanufacturing services under a long-term contract for Finning (Canada) in support of their customers in western Canada.

"This transaction demonstrates the confidence that Caterpillar has in Finning as a business partner, and in OEM Reman's ability to perform to Caterpillar's stringent quality requirements and aggressive production targets in a safe, cost effective manner," said Doug Whitehead, President and CEO of Finning International Inc.

"OEM Reman brings proven expertise in the remanufacture of industrial components, and has a valued reputation in markets that we are well positioned to serve," said Steve Fisher, Caterpillar Vice President with responsibility for remanufacturing.

Caterpillar, one of the world's largest remanufacturers, announced in 2004 that its remanufacturing group would offer its capabilities to original equipment manufacturers in other industries, including automotive and industrial products. Caterpillar has entered a number of strategic alliances with original equipment manufacturers and remanufacturers to expand its presence in external remanufacturing markets.

About OEM Remanufacturing Company Inc.

OEM Reman is one of North America's most advanced engine and powertrain component remanufacturing providers, serving the mining, rail, construction and forestry sectors. OEM Reman operates from a new, state-of-the-art 286,000 square foot facility located in Edmonton, Alberta.

About Caterpillar Inc.

For 80 years, Caterpillar Inc. has been building the world's infrastructure and, in partnership with its worldwide dealer network, is driving positive and sustainable change on every continent. With 2005 sales and revenues of $30.25 billion, Caterpillar is a technology leader and the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. More information is available at www.cat.com.

About Finning International Inc.

Finning International Inc. is one of the world's largest Caterpillar equipment dealers. The Company sells, rents, finances and provides customer support services for Caterpillar equipment and engines in Western Canada, the U.K., and South America (Chile, Argentina, Bolivia and Uruguay). Finning also owns Hewden, the largest equipment rental business in Europe. Headquartered in Vancouver, British Columbia, Canada, Finning International Inc. is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). For additional information please visit our website at www.finning.com.

This release may contain forward-looking statements and information, which reflect the current view of Finning International Inc. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and Finning's actual results of operations could differ materially from historical results or current expectations. Finning assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize.

Refer to Finning's annual report, management information circular, annual information form and other filings with the Ontario Securities Commission and Toronto Stock Exchange for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements contained in this report.

Contact Information