George T. Rountree Technology & University Relations Mgr. MAY 30, 2003

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1 UNIVERSITY-INDUSTRY RELATIONSHIPS George T. Rountree Technology & University Relations Mgr. MAY 30, 2003

2

3 Financials 2002 sales: $20.15 B 2002 profits: $798 M Leading US exporter: $5+ billion in sales 55% of 2002 sales were overseas Property, plant & equipment expenses: $1B Projected sales of $30 billion by year 2010, 5-7% annual growth

4 Caterpillar Inc. North American Facilities

5 Research and Engineering Invested $854 million in 2002 on Research and Engineering Technological leader in diesel emissions reduction technology Over 2,300 patents in last 5 years Leader in electronics, electro-hydraulics, and intelligent monitoring

6 Research Goals at Universities Build relationships with universities that have leading-edge expertise and whose industrial interests match our technological needs. Complement our internal research. Put framework research agreements in place. Long-term relationships. Build/strengthen recruiting relationships.

7 Master Sponsored Research Agreements UIUC (includes UIC & UIS) Purdue (includes MSOE) Carnegie Mellon North Carolina State Ohio State Pending Agreements North Carolina A & T Wisconsin - Madison Georgia Tech Bradley Iowa State

8 STRATEGIC PARTNERS BRADLEY FLORIDA A&M GEORGIA TECH ILLINOIS STATE MICHIGAN N CAROLINA A&T PURDUE SOUTHERN ILLINOIS TEXAS A&M U ILLINOIS - CHICAGO U ILLINOIS - UC U TEXAS - AUSTIN

9 Research Partners Carnegie Mellon University Aachen University - Germany U. of Wisconsin - Madison North Carolina State University Georgia Institute of Technology U. of Alabama -Tuscaloosa University of Hull - UK U. of Arizona Art Center College of Design Brown University U. of California - Davis Los Alamos U. of Bath - UK Lawrence Livermore U. of Nebraska - Lincoln U. of Kentucky Auburn University U. of Wisconsin - Milwaukee U. of Missouri - Colombia U. of California - Berkeley U. of North Carolina - Charlotte Colorado School of Mines U. of Cincinnati Lehigh University Virginia Polytechnical Institute U. of Illinois - Chicago Pacific Northwest Massachusetts Institute of Technology U. of Florida Sandia State University of New York - Stony Brook U. of South Hampton - UK McMaster University - Canada Bradley University Oak Ridge Milwaukee School of Engineering U. of Alabama -Birmingham U. of Dayton U. of Texas - Austin Iowa State University U. of Nebraska - Lincoln New York State College of Ceramics Southern Illinois University - Carbondale U. of Cambridge - UK U. of Iowa U. of Pennsylvania Pennsylvania State University Stanford University U. of Michigan - Ann Arbor Dresden University of Technology - Germany Brunel University - UK Argonne Purdue University U. of Manchester- UK Washington University (St.Louis) U. of Maryland ARS (Ag research lab in Peoria) U. of Illinois - Urbana/Champaign Northwestern University Ohio State University Michigan Technological University U. of Missouri - Rolla

10 Unanticipated Benefits Champaign Simulation Center. NCSA technology, growth and funding. Ability to influence university programs. Enhanced understanding of Caterpillar by women and minority student organizations. Ability to network with other companies. Awareness of state and federal funding sources.

11 IP Technology Portfolio Development Extract Value Invent or Acquire Protect Utilize in Core Business Create Spinoff with 100% Equity JV with External Partners Sell and/or License Equity Position through For-Profit Partners Cross- License Gift / Donate Hold Place in Public Domain Benefits of Cat Technology Donations? Donee (501-c3): Increase Licensing Revenue Spin-off Companies Build Strong Relationships With Industry Company: New Option to Leverage Technology Taxes & Annuities - Cost Savings Recruiting See some of Cat Technologies for License or Donation at: Or, (type Caterpillar in search screen) Call Corporate Technology Licensing at: (309)

12 FUTURE TRENDS Math and Science will Prevail Modeling and Simulation are Keys Creativity and Innovation Make Winners Partnerships and Alliances are Essential

13 Design, build, & ship in one day

14

15 George T. Rountree Technology & University Relations Mgr.

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