Table of Contents. Finning International Inc... 1 Finning Universal Machinery Services Inventory... 2

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2 Table of Contents Finning International Inc Finning Universal Machinery Services... 1 Inventory... 2 Quality Equipment... 2 Quality Rebuilds... 3 Buy Direct & Save Money... 3 Equipment Ownership Options... 3 Used Parts & Attachments... 4 Finning-Auctions.com Internet Site... 5 Finning Full Disclosure... 6 Finning Value-Added Package... 7 Finning Fair Deal Warranty... 7 Customer Services... 8 Inspection Services... 8 Used Equipment Valuations... 9 Guaranteed Buy Backs... 9 Financing... 9 Shipping & Logistics Maintenance Contracts Private Treaty Sales & Equipment Liquidation Equipment Consignment & Sourcing How Can We Help You? Contact List Page Rev. 06/00

3 Finning International Inc. Over 60 years of heavy equipment experience 1 Finning International Inc. is one of the world s largest equipment dealers. A publicly traded company, Finning and its divisions sell, finance and service Caterpillar and other complementary equipment throughout their principal markets in Western Canada, the United Kingdom and Chile. Finning (Canada) Finning U.K. Ltd. Finning Chile S.A. Finning U.M.S. (used equipment) Finning was incorporated in 1933 and has since grown to be a company with over 100 sales and service outlets on three continents, $2.3 billion in sales, and more than 5,000 employees. Finning International Inc. is headquartered in Vancouver, BC, Canada and has four major divisions: 1. Finning (Canada) - Western Canada (British Columbia, Alberta, Yukon, and Northwest Territories). Headquarters: Edmonton, Alberta. Finning International Inc. and Finning UMS are located in Vancouver, BC Canada 2. Finning U.K. Ltd. - United Kingdom. Headquarters: Cannock, U.K. 3. Finning Chile S.A. Chile. Headquarters: Santiago, Chile. 4. Finning Universal Machinery Services - International used equipment, parts & attachments sales. Headquarters: Vancouver, BC Canada Finning Universal Machinery Services From a single part to an entire fleet, we can supply it Finning UMS sales representatives work with customers from all over the world Finning Universal Machinery Services (UMS) is the international used equipment and parts sales division of Finning International Inc. Finning UMS became an independent branch of used equipment in 1992 to sell and service the evergrowing international used equipment marketplace, estimated to be worth as much as $100 billion U.S. per year.

4 We sell, rent, lease, service and finance used equipment, including Caterpillar and other quality brands. 2 With the best used equipment and parts selection anywhere, our sales professionals can supply a single part, parts packages, or an entire fleet of equipment. We also offer full machine warranties, custom financial arrangements, and the support customers need to succeed. (See the Customer Services section for more details.) We have supplied equipment for major projects throughout North America as well as in Uzbekistan, Algeria, Indonesia and many other countries. Our sales representatives have extensive international experience in servicing the construction, mining and forestry industries. Finning UMS personnel are located around the globe and many of our sales and inventory staff speak several languages fluently. Our experienced equipment operators, fleet managers, certified heavy-duty mechanics, and financial specialists work together to give you an edge over the competition. Finning UMS can quickly access thousands of competitively-priced machines Equipment Inventory Thousands of quality machines available Finning UMS carries over $50 million of used equipment and has access to the used equipment inventories of other divisions of Finning, valued at over $150 million. We have quick access to thousands of competitively-priced machines worldwide. Finning Canada and UMS alone have over 2000 machines and attachments of all types, sizes, and makes. These machines have been returned from lease, taken in trade, consigned exclusively, or purchased on the open market and reconditioned for resale. There is a wide range of As- Is machines as well as completely rebuilt units. Quality Equipment: Guaranteed Finning UMS specializes in low hour machines for better reliability and efficiency. Used Caterpillar equipment sold by Finning UMS generally meets a combination of the following conditions: Machines with low to moderately low overall frame hours, and a significant amount of life remaining in major powertrain components Machines where major powertrain components may have been replaced, but still have significant life remaining By combining a fleet of high quality used machines, a planned replacement program, and effective repair & maintenance, you ll achieve: Higher equipment reliability Minimum downtime Predictable mechanical operating costs Improved equipment residual values Lowest cost per unit of production

5 Quality Rebuilds: Like New Finning specializes in rebuilding several types of Caterpillar equipment. The machines perform like new but cost significantly less and are backed by a six-month powertrain warranty. 3 Finning s rebuilt machines perform like new but cost a lot less Every machine is stripped to the main frame. Individual components are repaired, assembled and tested before going back into the machine. The rebuilds meet Caterpillar Parts strict reusability guidelines on powertrain components. The equipment is rebuilt at various branches throughout Finning Canada. Buy direct and save money Finning UMS offers its entire heavy equipment list publicly on the Internet as well as with several listing services and trade magazines. Since our inventory data is easily available to most brokers and equipment dealers, the machines are often quoted to customers through an intermediary source. In a typical sale, a machine will often go through several transactions before it gets to the end user. Many companies work with equipment brokers and importers rather than the original seller, which has the adverse effect of a machine being marked up over and above its original price as it changes hands. Finning UMS offers flexible equipment ownership options At Finning UMS, all listed inventory is either our own or on an exclusive consignment from our customers. These machines are the best value for customers because the equipment has not been marked up through a series of transactions. In fact, we created a software program called the Used Equipment Valuation TM system (UEV) that constantly monitors the international used equipment market and compares recent sales of similar machines around the world. Customers can be sure they are getting the fairest possible equipment deals. Equipment Ownership Options: Choices that meet your business needs Finning UMS offers many equipment acquisition options to suit your business, subject to the most suitable financing and taxation conditions: Ownership Purchase (with or without financing) Purchase with Guaranteed Buy Back option Rental with option to purchase Leasing Standard lease Multiple payment options Rental Rent to Rent

6 Used Parts & Attachments Large or small orders. Standard or speciality items. We ll deliver. 4 Finning UMS acquires, sells and ships parts from all over the world Finning UMS distributes the cost-saving ALLU SM processing attachments Finning UMS stocks thousands of used parts and attachments. Worth over $15 million, our inventory consists of a wide variety of customized and all-purpose items, including 900 types of hydraulic cylinders, 100 engine configurations, specialized rebuilds, speciality parts items, and quality controlled components. We acquire, sell and ship parts from all over the world. We have over 1000 quality used attachments, including Finning manufactured models. We also sell cost-saving ALLU SM processing attachments. Instead of spending hundreds of thousands of dollars on a specialized machine, you just attach the ALLU SM mobile device to your existing tractors, excavators or wheel loaders. These devices can scoop, screen, blend, mix, pulverize and load. We can advise you on which ALLU SM model is right for your machine. Parts Inspections: Ensuring parts quality Used parts undergo inspection and grading Our parts are disassembled, cleaned and visually inspected for defects and excessive wear. Crankshafts, camshafts, and spindles are magnaflux and/or sonoflux tested for cracks. Engines are dynamometer tested up to 1½ hours to detect fluid and air leaks. Still need more assurance of a part s quality? Our Internet cameras let you see a part before you buy it Used Parts personnel can quickly access thousands of parts and attachments for customers worldwide We can actually show you the part before you buy it. Special cameras in our parts warehouses are connected to the Internet, which allows you to call the warehouse and request that the part be brought to the video-viewing platform. A Finning partsman can rotate the part and display it from all angles so you know exactly what you re purchasing. Visit our used parts web site for more information.

7 5 Finning-Auctions.com Big on savings, low on risks We provide value-added services such as financing, warranty & shipping In May 2000, Finning launched Finning-Auctions.com, an auction web site for used heavy equipment. Finning realized the potential of the Internet and established a corporate web site in We consistently use the World Wide Web and to market our equipment. The Internet has had a dramatic effect on the heavy equipment industry. Equipment users no longer need to rely on brokers or dealers to find equipment. Users can quickly access equipment information via the Internet and shop around for the best price, and all at their own convenience. No more waiting around for equipment photos to arrive in the mail. Owners can view equipment photos on web sites or get them ed in a matter of minutes. This has turned the industry into a buyer s market. The buyers have more control than ever before. This change has forced the heavy equipment industry to come up with more innovative methods to attract potential buyers. There are several equipment auction web sites on the internet today that advertise equipment up for bid, and operate by charging the equipment seller a listing fee. But too often these auction sites lack quality and quantity. Finning-Auctions.com is managed by Finning UMS and has the resources and services that many other equipment sellers can t offer. While in the development phase, we studied other heavy equipment auction sites. Some of the problems we found with many of these sites were: The sites acted only as an intermediary and provided little support, for shipping and warranty. The buyer assumed most of the risk.

8 6 There was not enough information and photos about the machines they were auctioning. Very few posted specifications or maintenance histories. Poor equipment selection. Bidders had little to choose from. Very few had good post-sales support. The sites had long forms to fill out and difficult terms to understand. Few sites have much experience in the heavy equipment industry and didn t understand the needs of heavy equipment users. On the home page, you can select auction items by category or click view all auction items to see all machines up for offer. A 1997 Caterpillar 966F Series II wheel loader that was up for auction on Finning-Auctions.com Our goal was to create a used equipment auction site that would serve you in the following ways: Provide more information than anyone else and do it seamlessly, efficiently and constantly. Reduce the risk for you while preserving the full potential for savings. Provide service and value-added options, such as warranty, financing, inspection services, Used Equipment Valuations, guaranteed buy backs, and shipping all from one source! Provide an opportunity for heavy equipment owners to consign their equipment and get maximum exposure to the international equipment market. Finning has many strengths and advantages in the heavy equipment business: 67 years of experience selling and servicing equipment for the mining, forestry, and construction industries. We know the demands and needs of equipment users. We have the infrastructure and contacts to do business globally. We have personnel located around the world and can source equipment quickly. We have a large selection of used equipment to choose from, both Caterpillar and other brands. We were one of the first heavy equipment dealers to realize the power of the Internet, establishing a corporate web site in To fulfil our objectives, Finning UMS created three customer service initiatives: Finning Full Disclosure : We make sure you have all the facts! We want you to be satisfied in every way when you buy from us. That s why we provide you with detailed information about every machine, so you can make an informed decision. How do we do it? We show you more of each machine from shiny paint to dents and cracks. Nothing is hidden. The photographs are of the actual machines and never retouched. We tell you more about each machine. You demand detailed and accurate information on each piece of equipment, and that s why every machine up for offer has a comprehensive inspection report next to it. Finning UMS only employs certified heavy-duty mechanics to inspect equipment.

9 We ll make it right or we ll take the machine back Whatever type of machine you buy from us, we certify what we sell. If you receive a machine from us and it is not as we materially represented it, we ll make it right or we ll take the machine back. And the to-and-from shipping charges are on us. 7 We provide direct contact information for each offered machine so you can get answers to any questions you might have. Finning Value-Added Package : Comprehensive services all from one trusted source We can provide you services we already have years of experience with, everything from inspections and warranty to financing and shipping. (See the Customer Services section for more details.) Finning Fair Deal Warranty : The only surprises are good surprises When you buy through Finning-Auctions.com you ll get the protection of an exclusive Finning Fair Deal Warranty. Defective powertrain components will be repaired or replaced by a dealer in your area to uncompromising Finning UMS standards. The only surprises you will find in the Finning Fair Deal Warranty are good surprises. It matches or improves on standard industry warranties, providing for repair or replacement of major powertrain components. The coverage is fully described in the warranty documentation prepared for the equipment you purchase. Discover the benefits for yourself. Visit

10 Customer Services Helping reduce your downtime and increase your productivity 8 Whether you work in forestry, mining, construction, agriculture, oil and natural gas exploration, or similar operations, Finning UMS s unmatched customer support and quality service will fill your needs. We offer a range of warranties up to six months on selected machines, full service contracts for the duration of a project wherever the location, as well as a consignment sale service, Buy Back Guarantees and trade-up options. Through the vast Cat dealer network, Finning UMS can offer comprehensive warranty coverage on any unit we sell. On-site technical support from your resident Cat dealer ensures your rigorous serviceability standards are maintained. We take a partnership approach to business by offering equipment management and planning solutions and financial alternatives. Listed below is our Value-Added Package TM. These services are available individually or combined. Ask for the ones that suit your needs. Services that meet your needs Inspection Services: We help reduce the risk of buying used equipment Need to have equipment inspected? Our inspectors are certified heavy-duty mechanics with years of international experience. When inspecting equipment, they write up the equipment condition on our comprehensive inspection form, take detailed photos from all angles, and run the equipment to determine operating condition. We also try to determine the application history of the equipment. Has it been pushing sand? Digging up coal? Running over rock? Specific types of application may significantly impact the condition of the machine: salt air exposure can cause corrosion; hard rock can cause significant abrasion and wear. The application history is often an important factor in making your equipment purchase. Finning UMS has created a code system to give you a quick reference on the condition of each machine and a description on the eligibility requirements each machine must meet. For example, a code 9 means the equipment is in excellent condition, less than 3 model years old, and has less than 1,500 original frame hours. UMS conditions codes provide a quick reference to equipment quality Finning UMS offers customized inspection packages. We can base rates on per machine group, per machine package, percentage of equipment value, or hourly. We can also advise you on how to keep productivity high, control costs, lengthen equipment life, and increase trade-in value. You ll receive detailed information, including the inspection report, a Used Equipment Valuation TM analysis, photographs and expert advice on its operating condition.

11 Used Equipment Valuations: A valuable tool. Only Finning UMS has it 9 Finning UMS has created a one-of-a-kind analytical tool called the Used Equipment Valuation (UEV) program. After analysing the inspection report, our inspectors input the details into the *UEV software program. It then determines the estimated market value of machines. The Used Equipment Valuation TM developed by Finning UMS tracks global used equipment prices The UEV helps you by providing a good indication of how much money you could sell your equipment for or how much you could pay for specific equipment. The UEV takes a recent sampling of global machine* sales by model and year as well as the age, condition and configuration of each machine to get the closest possible match to its estimated current market price. It s fast and up-to-date, but you won t find it at our competitors. *(Currently available only for Caterpillar equipment) Guaranteed Buy Backs: An innovative alternative to leasing equipment With this option (subject to Finning UMS approval), we agree to buy back equipment* that we have previously sold to you. At the end of the Buy Back term, you have a guaranteed sale What are the benefits of a Guaranteed Buy Back? At the end of the Buy Back term, you know you have a guaranteed sale. But, if the equipment increases in value, you aren t compelled to sell it back to us. Let s say you sign a Guaranteed Buy Back on a machine worth $120,000. A year later the Buy Back term expires and the demand for that type of machine has increased. The machine is now worth $130,000 in the world equipment market. You re not obligated to sell it back to us for the original $120,000. You re free to sell the equipment somewhere else for the higher price. In fact, we ll even try to help you find a buyer for that higher price. If the demand for that machine drops and is worth only $110,000 when the Buy Back expires, we ll still pay you the original agreed upon price of $120,000. We re obligated. You re not. It all equals a win-win situation for you. To determine the estimated market value of machines, we use a methodical approach using a variety of tools, such as the Used Equipment Valuation, and by calculating the remaining life of powertrain components, we determine the residual value of a machine. The Finning UMS Guaranteed Buy Back is available only for machines inspected by Finning inspectors or our certified inspection partner. The availability of this option may also depend on the current supply and demand of the equipment listed in your Buy Back agreement. *(For equipment purchased at least 6 months prior) Financing: Flexible options for heavy equipment users, big or small As well as our own in-house financing, Finning UMS has an excellent reputation with many third-party financing and leasing companies around the world. We can offer you a broad range of financing alternatives to help you make the right choice when purchasing equipment. We have the resources to provide major financing to the largest corporations, but we are equally responsive to the needs of small and medium-size companies.

12 We can offer you a broad range of financing options Using our experience and knowledge of the equipment industry, we analyse your financial situation and recommend the best option. We take into account changing job conditions, such as seasonal shutdowns and work stoppages, and will tailor financing to accommodate your capital and cash flow circumstances. 10 We want to help you achieve your business goals. Shipping and Logistics: We take the headache out of shipping equipment Finning UMS can handle all shipping and customs arrangements so equipment arrives where and when it s needed. We can also take care of all customs and brokerage documentation so that wherever possible you ll know about any duty or brokerage fees ahead of time. Our traffic department is in constant contact with all ports and transportation lines and is experienced with customs and the international regulations involved in moving heavy equipment throughout the world. Because of our vast experience in shipping all types of machinery, Finning UMS knows efficient and cost-effective ways to dismantle equipment for shipment. We deal only with reputable shipping companies that can deliver on time and offer competitive shipping rates. Maintenance Contracts: Let Finning UMS take the worry out of equipment maintenance With its worldwide contacts and extensive resources, Finning UMS can offer a turnkey solution for equipment maintenance. We can handle maintenance contracts up to 3 years in duration and for projects that are $10 to $15 million (U.S.) in value. Depend on us to keep your machines up and running. Private Treaty Sales and Equipment Liquidation: We can handle the details Finning UMS can also liquidate large fleets of equipment due to bankruptcy, company closure, and asset disposal. We ve been involved in several private treaty sales and handled all the equipment inspection and valuations, marketing, shipping and logistics. Ask us how our expertise can make your job easier. Equipment Consignment and Sourcing: Benefit from our worldwide contacts and exposure Whether you need to consign equipment or require sourcing services, you can depend on Finning UMS to use its worldwide exposure and extensive contacts to get you the fairest deal. Why consign equipment? There are many advantages to signing an exclusive consignment deal with Finning UMS: You get exposure to a worldwide market. We have over 75 salesmen located across the globe, plus several agents with exclusive agreements with Finning UMS.

13 We advertise your equipment in high-circulation heavy equipment publications, web sites and our equipment listings catalogues. Our personal selling and extensive marketing may result in higher selling prices, maximizing the return to you. You always have the final say on selling price. The fee you pay Finning is competitive with that of other disposal methods. You get prompt payment. 11 Finning UMS sends its equipment listings and brochures to customers around the world As a buyer of Finning UMS consignment equipment, you ll enjoy the following benefits: The equipment is advertised accurately with no misrepresentation in accordance with the Finning Full Disclosure. You can be confident of the price and condition of the machine before committing the time and expense of a personal inspection. You have ample time to inspect the machinery and condition reports. No pressure cooker atmosphere like a live auction. You can be sure you ll get clear title to the machine you ve paid for. If we don t have the equipment you re looking for, Finning UMS can help source the equipment you need. Using our global network of sales contacts, we can access thousands of machines. We do the legwork for you. (Note: The information provided is subject to more detailed policies and specific terms and conditions of our various agreements. Both third-party and in-house financing programs are subject to credit review, the standard terms of conditions of Finning s credit application, and approval by appropriate parties.)

14 Finning Universal Machinery Services How can we help you? 12 We welcome your comments and inquires about our products and services. Contact a sales representative now, and ask us how we can help your business. Contact: Finning UMS Head Office 555 Great Northern Way Vancouver, BC Canada V5T 1E2 North America toll free: Direct phone: (604) Fax: (604) Corporate web site: Finning UMS Used Parts & Attachments th Avenue Surrey, BC Canada V4N 4C4 Phone: (604) Fax: (604) Web site: Houston, Texas branch 1807 Rankin Road Houston Texas Phone: (281) Fax: (281) Finning UMS United Kingdom 5 & 6 St. Mary s Mews, St. Mary s Place Stafford, U.K. ST16 2AP Phone: Fax: Finning-Auctions.com 555 Great Northern Way Vancouver, BC Canada V5T 1E2 Contact Auction Administrator North America toll free: extension 4969 Direct phone: (604) Fax: (604) AucAdmin@finning.ca Web site