EMBARQ's plans for expansion into new Latin American, Turkish, and Asian markets gained significant momentum with the April 27, 2006 announcement of a new $7.5 million contribution from the Caterpillar Foundation.

The Caterpillar Foundation joins the Shell Foundation, which recently renewed its initial $7.5 million investment in EMBARQ’s efforts to meet the sustainable mobility needs of cities across the world. These two contributions will form the core of a $43 million philanthropic investment to scale up EMBARQ’s expanding projects in some of the world’s largest and fastest-growing cities.

Working with local governments and leaders, EMBARQ develops environmentally and financially sustainable solutions to urban transport problems, addressing issues of air pollution, greenhouse gas emissions, traffic congestion and safety. Solutions to these problems include replacing outdated equipment and retrofitting existing buses with modern diesel technology, areas where Caterpillar has significant expertise.

“Caterpillar is committed to using its strength and resources to improve the lives of people around the world, and we’re pleased to help support the EMBARQ initiative,” said Caterpillar Chairman and Chief Executive Officer Jim Owens. “We are confident that the partnership with WRI and Shell Foundation will significantly contribute to an improved environment in the world’s fastest growing urban areas by reducing emissions arising from public transportation.”

EMBARQ began its efforts with initial funding from the Shell Foundation in 2002, and the addition of Caterpillar as a major partner is a significant expansion. The funds will be used to support engineering and transportation planning, architectural and design services, communications and transportation management and other services.

“I am delighted the Caterpillar Foundation has joined the Shell Foundation as a core investor in EMBARQ,” said Kurt Hoffman, Director of the Shell Foundation. “Caterpillar’s financial support, as well as its world class reputation, knowledge and networks will add greatly to the unique public-private partnership model EMBARQ uses to help cities solve their congestion and pollution problems.”

During a pilot project in Mexico City, EMBARQ created a new bus rapid transit corridor that carries 250,000 passengers a day, cutting travel times in half and eliminating 43,000 tons of carbon dioxide emissions per year. The 20 kilometer bus rapid transit (BRT) system uses 80 new, diesel-powered articulated buses. Additionally, EMBARQ and the center it founded, the Centro de Transporte Sustentable-Mexico (CTS-Mexico), managed the first diesel retrofit pilot project in that country.

“EMBARQ is pleased and proud to have the Caterpillar Foundation join Shell Foundation as a global strategic partner in our expanding efforts to reduce the banes of urban living, including traffic congestion, air pollution, and the lack of safety on the streets,” said Nancy Kete, Director of EMBARQ.

Over the next five years, EMBARQ plans to replicate its Mexico City success in 13 other locations, including several in Mexico, Porto Alegre in Brazil, Istanbul in Turkey and fast growing cities in Asia.

The World Resources Institute (www.wri.org) is an independent, non-partisan and nonprofit organization with a staff of more than 100 scientists, economists, policy experts, business analysts, statistical analysts, mapmakers, and communicators developing and promoting policies that will help protect the Earth and improve people’s lives.

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2005 sales and revenues of $36.339 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company is also a technology leader in construction, transportation, mining, forestry, energy, logistics, remanufacturing, financing and electric power generation. More information is available at http://www.CAT.com/.