ASV Announces Alliances With Vermeer and Cat

Posted on September 27, 2005

Vermeer Manufacturing Co. and ASV, Inc. have announced a long-term commercial alliance between the two companies. The alliance designates ASV as the exclusive rubber track undercarriage supplier for the Vermeer line of utility trenchers and other products. Under the agreement, ASV will supply its rubber track undercarriages to select products in Vermeer's line of horizontal directional drills, utility trenchers and other products. Three new models of utility trenchers and one new horizontal directional drill utilizing ASV's undercarriage technology will be introduced by Vermeer at the International Construction and Utility Equipment Exposition (ICUEE) in Louisville, Ky. September 27 - 29, 2005. The companies anticipate limited production of some of the new models in late fourth quarter 2005.

ASV, Inc. also said it has signed a five-year supply agreement with Caterpillar Inc. effective November 1, 2005. The two companies had an agreement for the rubber track loader market which expires October 31, 2005. The agreement calls for Caterpillar to purchase 100% of its undercarriage requirements for current and specified future Caterpillar multi-terrain loaders (MTLs) from ASV, while ASV will continue to be allowed to sell its rubber track undercarriages to other equipment manufacturers for machines that do not compete with Caterpillar's multi-terrain loaders.