New Report Reveals Trucking Industry Growth Expected in 2006
Caterpillar^® FCC Equipment Financing Releases Market Status Update and Forecasts

FCC Equipment Financing Inc., a subsidiary of Caterpillar^® Financial Services Corporation that provides a full range of traditional loan and lease products to the transportation market, recently released a comprehensive report designed to provide a compilation of viewpoints on the current status of the trucking industry and future forecasts, along with customer insights.

The report, titled "North American On-Highway Market Issues: Current Status and Future Outlook," provides overviews of the North American truck market broken out by heavy duty and mid-range sectors, along with an On-Highway finance market overview. While numerous industry resources were consulted in the development of this report, a fleet customer survey designed to track industry trends and growth factors and how they impact the acquisition of class 6-8 vehicles provided key information.

Highlights of this survey include the following:

• Over 95 percent said business will be as good or better in 2006 than 2005.
• More than 50 percent said the volume of freight they planned to haul increased in 2005 over 2004.
• 81 percent indicated their capital budgets would be the same or better, with more than 25 percent saying new equipment budgets will increase for 2006.
• 75 percent expect truck pricing to increase in 2006 versus 2005, with 25 percent saying the increase would be significant.
• 62 percent said trailer pricing would increase in 2006 versus 2005, but only
  12 percent thought the increase would be significant.
• 82 percent of fleets surveyed stated they are implementing fuel surcharges to offset the rising cost of diesel fuel.
• Fleets indicated that the most important cost factors impacting their businesses were fuel costs (64 percent) and driver costs (23 percent).

An in-depth understanding of the transportation business and a significant amount of available funding capacity enables FCC to deliver personalized service to fit a fleet's individual needs, according to Lee Kermode, national sales manager for fleet financing, FCC Equipment Financing.

"In addition to extensive non-captive end user financing experience, we have specialists that are focused entirely on the transportation industry. This enables us to provide an unequaled level of customer service," Kermode said. "We aren't just a funding source—we act as advocates on behalf of our customers, managing risk while ensuring our financing package meets their individual needs. Our dedicated resources in this market and the considerable assets made available by Cat Financial give us the flexibility to meet a fleet's requirements."

Serving primarily mid-sized and large private fleets and common carriers throughout the U.S. that rely on medium or heavy-duty trucks (classes 6, 7, and 8), trailers and related transportation equipment, FCC delivers a variety of options by financing both new and used equipment, multiple brands and mixed equipment fleets. Other services provided by FCC include financing for equipment leasing, tax leasing, revolving lines of credit, debt consolidation and restructuring, and pre-approved lines of credit. Direct term loans are offered at fixed or floating rates, as well as true leases and TRAC leases. Transactions are competitively priced, with LIBOR-based rates or fixed rates locked in at closing. Tax-oriented pricing also is available.

About FCC Equipment Financing Inc. FCC Equipment Financing, a Delaware corporation organized in 1996, is a wholly owned subsidiary of Caterpillar Financial Services Corporation. FCC provides financing and leasing capital in a wide variety of industries offering structured financing solutions to users, vendors and manufacturers who use and sell income-producing equipment. FCC's familiarity with collateral values, together with Cat Financial's assets in excess of $20 billion, gives the company a unique opportunity to provide a full range of traditional loan and lease products to businesses in the transportation market. More information is available at fccequipmentfinancing.com.

###

Issue 43 6/13/06
To learn more about Caterpillar On-Highway Engines, please visit:
http://www.cattruckengines.com/.