Blount to Produce Cat Branded Forest Products

PORTLAND, Ore., Feb. 17 /PRNewswire-FirstCall/ -- Blount International, Inc. announced today it is in the process of amending its marketing and supply agreements with Caterpillar Inc. to change the alliance brand of forestry equipment from "Timberking" to "Caterpillar" and "Cat." This proposed amendment to the March 2003 agreements whereby Blount sells certain forestry equipment under the Cat-owned Timberking brand and provides marketing and product support to Caterpillar forestry dealers worldwide. The Timberking line is sold exclusively through Caterpillar dealers, and consists of certain product lines manufactured by Blount and others by Caterpillar.

The alliance, now in its third year, has been a strong strategic fit for both companies and has given Blount greater access to global marketing channels. Blount's reputation for quality, innovation and longevity in the market, coupled with Caterpillar's global brand recognition, distribution expertise and component capabilities has given Caterpillar dealers a complete line of forestry equipment to meet the needs of customers worldwide, and has enhanced Blount's position as a market leader in the design and manufacture of forestry equipment. Blount will continue to sell its brand of forestry machines through its existing dealer organization.

"Having the Cat brand on our products is a tribute to the expertise we have developed over the more than sixty years in the business of manufacturing forestry equipment," commented Dennis Eagan, President of Blount's Industrial and Power Equipment Group. "We are pleased to have this recognition and acceptance of our manufacturing capabilities from Caterpillar, a well respected manufacturer with a reputation for high quality product and an excellent global dealer network."

Under these arrangements, Blount will continue to be solely responsible for marketing, as well as providing product support to Caterpillar dealers. "This requires the expertise of a forestry-focused company such as Blount," continues Eagan. "In addition, providing an expanded range of products and having the combined resources of Blount and Caterpillar has enhanced product development and technical advancement opportunities, thus benefiting both dealer organizations and their customers. This cooperation provides opportunities for further component sourcing from Caterpillar for Blount manufactured equipment."

John Carpenter, President of Caterpillar Forest Products, said, "Caterpillar's alliance with Blount is a strong strategic fit. Customers' experiences since the inception of the partnership have shown that these products will strongly support the Caterpillar brand promise. Branding all of our products Caterpillar shows the industry how strongly the company feels about the products and the forestry business as a whole."

Blount expects shipment of the first Cat branded products to begin in February with track feller-bunchers/harvesters. The full line of Cat branded products will be available at Caterpillar dealerships worldwide within the next several months.

Blount will continue to sell its market-leading brands of forestry equipment under the Prentice, Hydro-Ax, Fabtek and CTR brand names through its separate network of Blount dealers.

Blount International, Inc. is a diversified international company operating in three principal business segments: Outdoor Products, Industrial and Power Equipment and Lawnmower. Blount International, Inc. sells its products in more than 100 countries around the world. For more information about Blount International, Inc., please visit the website at http://www.blount.com/ .

Forward-looking statements in this release, including without limitation the Company's "expectations," "beliefs," and "indications," and their variants, as defined by the Private Securities Litigation Reform Law of 1995, involve certain risks and actual results subsequent to the date of this announcement may differ materially.

First Call Analyst: FCMN Contact: holly.taft@blount.com