19 August 2000

Caterpillar Inc. has announced it entered into agreements with Clean Fuels Technology, Inc. (formerly A-55, Inc.) related to diesel-water emulsion fuel technology. In the agreements, Caterpillar assigns title to certain intellectual property to Clean Fuels, Clean Fuels licenses back that same intellectual property to Caterpillar, and Caterpillar gives a sublicense to that same intellectual property to The Lubrizol Corporation.

Caterpillar and A-55 were in a joint venture to develop and market aqueous fuel technology from July 1994 to October 1996, when the two companies agreed to dissolve the venture.

A-55 has continued its work in aqueous fuels after dissolution of the joint venture. Since 1997, Caterpillar has been working with Lubrizol in the development of their own water-blended fuel technology. The Lubrizol - Caterpillar cooperation eventually led to a bitter patent dispute between A-55 and Caterpillar. This January, an arbitrator found in favor of A-55, which charged Caterpillar with “fraudulently and deceitfully” filing 18 diesel-water emulsions patents and patent applications belonging to A-55.

“Caterpillar is pleased to have been able to resolve its issues with Clean Fuels amicably and constructively”, said Dan Murphy, Caterpillar vice president with responsibility for the Performance Engine Products Division. “We wish Clean Fuels success in their ongoing efforts to develop a clean-burning water-based blended fuel. Our former venture with A-55 and our continued relationship with Lubrizol are part of Caterpillar’s ongoing commitment to the reduction of engine emissions and to a cleaner environment.”

Source: Caterpillar Inc.