<PAGE>
EXHIBIT 99
Caterpillar, ASV, Complete Stock Purchase Transaction
Companies announce plans to develop a new line of machines
to revolutionize the skid steer loader industry
Grand Rapids, MN (October 31, 2000) - Caterpillar Inc. and A.S.V., Inc.
(Nasdaq ASVI) have completed a Securities Purchase Agreement in which
Caterpillar has purchased 500,000 newly issued shares of ASV Common Stock at $18
per share for a total of $9 million. Caterpillar has increased its ownership in
ASV to about 15 percent.
The two companies also announced the signing of an alliance agreement
in which they plan to jointly develop and manufacture a revolutionary new
product line of Caterpillar rubber track skid steer loaders called Multi-Terrain
Loaders. The product line, which is expected to include five new models, will
feature Caterpillar's patented skid steer loader technology and ASV's
patent-pending Maximum Traction Support System(TM) rubber track undercarriage.
The machines will complement existing models in both ASV's and Caterpillar's
current product lines. They will be sold through the Caterpillar dealer network.
"This is a significant moment in the history of our company and our
technology," said ASV President Gary Lemke. "The combination of proven
technologies from each of our companies will result in a revolutionary new line
of products that will provide greater value to customers in the construction,
landscaping, industrial and agricultural industries worldwide."
Under the terms of this alliance agreement, ASV will use a portion of
the stock sale proceeds to fund development of the new models. The first two
models are expected to be introduced to a limited number of North American
Caterpillar dealers in the second quarter of 2001.
The new machines will be assembled in Sanford, N.C., at Caterpillar's
skid steer loader facility. The undercarriages will be manufactured at ASV
headquarters in Grand Rapids, Minnesota.
In addition, Caterpillar announced that it will introduce larger skid
steer loader models next year featuring greater lift, reach and operating
capacity. "When the model line expansion is complete, Caterpillar will offer
customers a choice of 15 highly differentiated models of skid steer loaders that
will firmly establish Caterpillar as the technology leader in this rapidly
growing business," said Donald M. Ings, Caterpillar vice president with
responsibility for the company's Building Construction Products Division.
These new agreements are in addition to previous agreements entered
into by the two companies. Those agreements provided ASV access to the Cat
dealer network to distribute its Posi-Track(TM) products. Under these
agreements, Caterpillar purchased one million shares of ASV common stock and a
warrant to acquire approximately ten million shares of ASV's common stock. The
shares of common stock owned by Caterpillar, together with the warrant shares,
if exercised completely, would provide Caterpillar a majority ownership in ASV.
<PAGE>
Caterpillar Inc. is the world's leading manufacturer of construction
and mining equipment, diesel and natural gas engines and industrial gas
turbines. Headquartered in Peoria, Illinois, the company posted 1999 sales and
revenues of U.S. $19.7 billion.
ASV designs, manufactures and sells all-season, track-drive vehicles
and related accessories and attachments. With its patent-pending Maximum
Traction and Support System undercarriage, ASV leads all rubber-tracked,
all-purpose crawlers in technology and innovation. ASV's line of rubber-tracked
machines traverse nearly any terrain with minimal damage to the ground, making
it effective in industries such as construction, landscaping and agriculture.
To learn more about Caterpillar, visit the company's web site at
www.cat.com.
-----------
To learn more about ASV, Inc. and its line of rubber-tracked machines,
visit the Company's web site at www.posi-track.com. For additional financial
------------------
information about ASV, Inc., visit www.nasdaq.com.
--------------
ASV will conduct a live webcast at 9:30 a.m. Eastern time Nov. 1 to
discuss details of the alliance. Interested parties may listen to the call via
the Internet at http://www.vcall.com. Listeners should go to the website at
--------------------
least thirty minutes before the webcast to register for the call and download
and install any necessary audio software. There is no charge to access the
webcast. For those unable to attend the live broadcast, a replay will be
available beginning approximately two hours after the event for 90 days.
For more information:
Marsha Hausser
Caterpillar Inc.
(309) 675-1307
[email protected]
------------------------
Jay Lemke
Carmichael Lynch Spong
(612) 334-6029
[email protected]
-----------------
Note: The statements contained in this release regarding ASV's plans to
jointly develop and manufacture rubber-tracked machines with Caterpillar,
including the number of models to be developed, the timing of their planned
introduction, and ASV's intended use of the proceeds from the sale of shares to
Caterpillar are forward-looking statements based on current expectations and
assumptions, and entail various risks and uncertainties that could cause actual
results to differ materially from those expressed in such forward-looking
statements. Certain factors may effect whether these machines are ultimately
produced including the parties' ability to successfully jointly manufacture the
machines, unanticipated delays, costs or other difficulties in the development
or manufacture of the machines, market acceptance of the new machines, general
market conditions, corporate developments at ASV or Caterpillar and ASV's
ability to realize the anticipated benefits from its relationship with
Caterpillar and its dealers, could cause actual results to differ materially
from those anticipated in such forward-looking statements. Additional
information regarding these risk factors and uncertainties is detailed from time
to time in the company's SEC filings, including but not limited to, its report
on Form 10-Q for the six months ended June 30, 1999.
