April 16, 2007

Dear Dennis and Bill:

Successful implementation of Caterpillar's Pull Replenishment Strategy is vital to meet our Velocity and Order-to-Delivery objectives. Your participation in the Pull Replenishment Strategy implementation pilot played a crucial role in the development of the Pull Process that will help us meet and exceed our customers' expectations.

On behalf of Caterpillar and the Corporate Velocity Council, thank you for your hard work on the Pull Replenishment Strategy pilot team.

Your demonstration of Our Values in Action is a real asset to Team Caterpillar. You have played a key role in building excellence and teamwork into the Pull Replenishment Strategy implementation process.

Thank you for helping Caterpillar on its journey to Vision 2020!

Jim Waters, Vice President Caterpillar Production System Division Caterpillar Inc.