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Caterpillar and Ariel Corporation Create Joint Venture to Provide Complete Pressure-Pumping Solutions to Global Oil and Gas



  Caterpillar and Ariel Corporation Create Joint Venture to Provide Complete
          Pressure-Pumping Solutions to Global Oil and Gas Customers

Joint venture acquires pump manufacturer ProSource of Houston, Texas

PR Newswire

PEORIA, Ill. and MOUNT VERNON, Ohio, Dec. 5, 2012

PEORIA, Ill. and MOUNT VERNON, Ohio, Dec. 5, 2012 /PRNewswire/ -- Caterpillar
Inc. (NYSE: CAT) and Ariel Corporation announced today the formation of a
50-50 joint venture that will provide well service pressure pumping products
for customers in the global oil and gas industry.  The combined venture, Black
Horse LLC, also announced the acquisition of pump manufacturer ProSource of
Houston, Texas.

Caterpillar is the world's leading manufacturer of diesel and natural gas
engines for the generation, control and supply of mechanical and electric
power for the marine and petroleum industries. Ariel Corporation is a global
leader in the design and manufacture of gas compressors. More than 40,000
Ariel compressors are currently in use throughout the global energy industry
to extract, process, transport, store and distribute natural gas from the
wellhead to the end-user.

The acquisition of ProSource, which designs and manufactures reciprocating
pressure pumps, enables Black Horse LLC to serve the well service market.
Black Horse LLC will leverage Caterpillar and Ariel engineering and
manufacturing expertise to expand ProSource's existing product line to better
serve global oil and gas customers. Frac pumps sold through the combined
venture will be branded and sold under the Cat name and distributed through
the Cat dealer network. 

"We are thrilled to partner with Ariel to bring our petroleum customers not
just a partial solution, but a complete package," said Tom Frake, Caterpillar
vice president with responsibility for Marine and Petroleum Power. "Together,
with the support of our Cat dealer network, we can provide not only a complete
pressure-pumping solution, but also the global parts and service support to
maximize up-time throughout the world. This deal significantly improves our
capability to meet our oil and gas customers' needs for reliable, sustainable
power."

Under the arrangement, executives from Caterpillar's Marine and Petroleum
Power Division and Ariel Corporation will jointly lead Black Horse LLC. 

"Ariel has built an outstanding reputation by employing technology to provide
high-quality, innovative products backed by world-class customer support.
Caterpillar has done exactly the same," said Karen Buchwald Wright, Ariel's
president and chief executive officer. "This partnership brings together two
companies with the same strong values and commitment to customers' success.
It's an exciting, new chapter for both of us."           

The joint venture and integration of ProSource will result in important
synergies, including leveraging the companies' existing product ranges,
advanced technologies, research and development resources, and manufacturing,
distribution and customer support capabilities. 

Black Horse LLC is headquartered in Houston, Texas.

About Caterpillar:
For more than 85 years, Caterpillar Inc. has been making sustainable progress
possible and driving positive change on every continent. With 2011 sales and
revenues of $60.138 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 and Progress Rail Services. More information is
available at: http://www.caterpillar.com.

About Ariel:
Established in 1966, and headquartered in Mount Vernon, OH, Ariel Corporation
is the world's largest manufacturer of separable reciprocating gas compressors
utilized by the global energy industry to extract, process, transport, store,
and distribute natural gas from the wellhead to the end-user. Ariel also
produces specialized API-618 reciprocating compressors for the process
industry. As a world-class manufacturer, Ariel sets the industry standard
through industry-leading research & development, expert design &
manufacturing, and unmatched customer support. More information is available
at: http://www.ArielCorp.com.

Forward-Looking Statements
Certain statements in this press release relate to future events and
expectations and are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995.  Words such as "believe,"
"estimate," "will be," "will," "would," "expect," "anticipate," "plan,"
"project," "intend," "could," "should" or other similar words or expressions
often identify forward-looking statements.  All statements other than
statements of historical fact are forward-looking statements, including,
without limitation, statements regarding our outlook, projections, forecasts
or trend descriptions. These statements do not guarantee future performance,
and we do not undertake to update our forward-looking statements.

Caterpillar's actual results may differ materially from those described or
implied in our forward-looking statements based on a number of factors,
including, but not limited to: (i) global economic conditions and economic
conditions in the industries and markets we serve; (ii) government monetary or
fiscal policies and infrastructure spending; (iii) commodity or component
price increases and/or limited availability of raw materials and component
products, including steel; (iv) our and our customers', dealers' and
suppliers' ability to access and manage liquidity; (v) political and economic
risks and instability, including national or international conflicts and civil
unrest; (vi) our and Cat Financial's ability to: maintain credit ratings,
avoid material increases in borrowing costs, and access capital markets;
(vii) the financial condition and credit worthiness of Cat Financial's
customers; (viii) inability to realize expected benefits from acquisitions and
divestitures, including the acquisition of Bucyrus International, Inc.;
(ix) international trade and investment policies; (x) challenges related to
Tier 4 emissions compliance; (xi) market acceptance of our products and
services; (xii) changes in the competitive environment, including market
share, pricing and geographic and product mix of sales; (xiii) successful
implementation of capacity expansion projects, cost reduction initiatives and
efficiency or productivity initiatives, including the Caterpillar Production
System; (xiv) sourcing practices of our dealers or original equipment
manufacturers; (xv) compliance with environmental laws and regulations;
(xvi) alleged or actual violations of trade or anti-corruption laws and
regulations; (xvii) additional tax expense or exposure; (xviii) currency
fluctuations; (xix) our or Cat Financial's compliance with financial
covenants; (xx) increased pension plan funding obligations; (xxi) union
disputes or other employee relations issues; (xxii) significant legal
proceedings, claims, lawsuits or investigations; (xxiii) compliance
requirements imposed if carbon emissions legislation and/or regulations are
adopted; (xxiv) changes in accounting standards; (xxv) failure or breach of IT
security; (xxvi) adverse effects of natural disasters; and (xxvii) other
factors described in more detail under "Item 1A.  Risk Factors" in our
Form 10-K filed with the SEC on February 21, 2012 for the year ended
December 31, 2011.  This filing is available on our website at
www.caterpillar.com/secfilings.

SOURCE Caterpillar Inc.

Website: http://www.caterpillar.com
Website: http://www.ArielCorp.com
Contact: Bridget M. Young, Global Government & Corporate Affairs, Caterpillar,
+1-309-675-8463, Young_Bridget_M@cat.com; or Kent E. Dubbe, VP - Human
Resources & Org Development, Ariel, +1-740-397-0311
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