Letter From the President

6 Sigma Developing New Tools

2nd Annual Camanche Hills Clay Shoot

Think Big Press Release

Power Systems & CHEE

Holt’s 75th Celebration

2006 Employee Picnic

MHD Goes Platinum

Lexion Pre-Season Kick Off

You, Me & IT

Vacaville Now Open!

Business with Heart

Holt Paints the Town Again

2006 Star Scholars

What’s Inside?

Fall 2006Special Edition

Taking the Proactive Approach to Our Daily Activities

The key to ensure the success of Holt of California as the leader in all of our products and services in our territory is to build our company from the inside out. The first step in achieving this goal is to realize that success does not just happen; it is up to each of us to make it happen. We can’t always control any given situation, however there are two things we can always control – our attitude and our skills. We decide how we deal with any situation. My suggestion is to sort to the positive and look at each situation as an opportunity to grow and solve problems. Also, we can strive to acquire new knowledge and improve upon on the skills we have already learned to effectively run our business. Each employee here at Holt of California contributes to each aspect of our business. It is through this take-charge approach we can enhance the results and goals we all are striving to achieve.

Keeping this take-charge approach in mind here are a few key elements we can focus on within our business operations of Sales, Service, Rental and Parts.

Sales: Create a memorable experience in the minds of our customers and we will benefit from their loyalty. A prime example of customer service is to follow up. Depending on the needs of the customer, send an e -mail or make a phone call after the initial sale to see if the customer was satisfied and their needs have been met. By staying in touch with your customers, you exhibit a commitment of meeting and exceeding your customers’ expectations. When we commit to our customers, and supply them with the best, they will commit to our products and services.

Service: Effectively communicate with the customer as service work proceeds. Holt of California technicians receive extensive technical training which poses valuable in-field experience, enhancing the overall superior customer service experience. If the service is timely and consistent, and the customer is provided with accurate information then we will exceed our customers’ expectations.

Parts: Focus on accuracy and timeliness on every order. Our services at Holt of California outshine the competition when it comes to parts. Not only do we offer services other dealers do not, we also know our customers by name. Holt of California believes if our customers are successful we’re successful. Our customers are very busy just like we are and providing the customer with the correct information in a timely manner exemplifies customer service.

Rental: “Right tool, right place, right now” sums up what a Holt of California customer expects when they enter our CRS stores. Our CRS stores have expert counter and sales staffs, which help to meet our customers’ needs. Sometimes the smallest things can make the biggest difference. Always making sure the equipment is clean sends a big message to the customer that we care and always want to exceed their expectations. Another key element is staying up to date on vital product knowledge as our inventory expands. Did the customer rent the right product for the right application? If the answer is yes, then we listened to our customer and that is customer service.

If we all continue to make a conscious effort to take the proactive approach within our daily activities here at Holt, the end result will equal success.

Letter from the President

Ken Monroe

Holt Happenings is published quarterly by Corporate Communications.

The next publishing date is January 15, 2007

Alicia Clark, Writer/Editor

Articles submitted by Bill George, Kim Lightfoot, Rich Lund, Justin Relaford, Tim Riley, John Thomas and Joe Turk

916.991.8362 office 916.870.4877 cell

Copyright October 2006, Holt of California

Paint the Town 2006Painting a Brighter Outlook in Oak Park

Sixteen Holt of California Volunteers and Friends Help Paint the Town!

Mr. Gomez

For the second consecutive year, Holt of California sponsored and participated in a special Sacramento area community project known as Paint the Town. This heart-warming event was organized by NeighborWorks, which helps physically disabled and underprivileged seniors in Sacramento. For almost fifteen years NeighborWorks has been helping revamp several local communities.

Bright and early on Saturday, September 16, 2006 several Holt of California employees and friends prepped and painted the home of Mr. Gomez. Mr. Gomez resides in the Oak Park community and eagerly anticipated our arrival to help upgrade the exterior of his home. Throughout the day Mr. Gomez was nothing but smiles as volunteers worked together to paint his house. Within the course of an afternoon the once white weathered wood exterior transformed into a bright, clean and sharp looking home. The envy of the entire block!

Paint the Town was truly a success bringing co-workers, friends and community volunteers together to make a difference in their own neighborhood. This project would not have been possible without these volunteers who contributed their time and effort to such a great cause. Way to go Holt of California and friends!

Participating in “Paint the Town” was a very

productive and fun day! This event was very well organized. By all of

the volunteers working together as a group, we had great results, and we were able to complete our very ambitious goal in a timely manner. Our teamwork really paid-off! Mr. Gomez’s home

looked fantastic! -Sharon King

It is amazing to see what one afternoon and a brush can accomplish! The Gomez Residence is a completely different home and the new pride of the Oak Park area. It is refreshing to see a compa-ny such as Holt and their employees’ give back enriching the communities they serve on a daily basis. It is through community efforts such as “Paint the Town” that help turn neighborhoods around and truly make a difference, even if it is one brush stroke at a time. -Maureen Quinn

BeforeAfter

Business with HeartCPR/AED/First Aid 2006 Classes

So why are AEDs so important?Automatic External Defibrillators (AEDs)

Nearly 350,000 people die of sudden cardiac arrest each year. Currently, the chances of surviving Sudden Cardiac Arrest (SCA) are dramatically increased with the aid of an Automatic External Defibrillator (AED)!

The heart normally has a rhythmic beat which causes the blood to move in a consistent, predictable way. When someone has an SCA event, the heart begins to pump ir-regularly and ineffectively. Breathing stops, and eventually the victim will die. CPR can only assist the victim for a short time until medical help arrives. The AED can help restore a normal heartbeat and increase the chances of survival.

You’ve seen full-sized defibrillators on television. When the doctor shouts “Clear” and shocks the victim, they are using a defibrillator. The AED works the same—it shocks the heart back into a normal rhythm to restore a pulse.

Symptoms of SCA are very sudden and dramatic. Typically, the victim will collapse, and show no sign of a pulse. At this point, emergency medical help must be contacted. Then immediately use the AED. Once the victim’s chest is bare and all visible jewelry or medicine patches are removed at-tach the electrode pads.

Once the electrical pads are attached, the AED is turned on. Many AEDs will prompt the operator through the necessary steps to use it. If the AED does not sense a shockable event, no shock is given. Others will function automatically, apply-ing a shock to the victim after sounding a warning alarm.

In the near future almost all of our facilities will have AEDs on site. Certified employees who have been trained on how to use an AED are listed on the American Heart Association certification list. These list are located next to the AED or the Communication Board.

Holt of California and the American Heart Association joined forces to of-fer CPR/AED (Defibrillator) and First Aid classes for all employees interested in learning how to save a life. The adult CPR/AED/ First Aid Certification classes began August 28th 2006 and were held at the Pleasant Grove, West Sacramento and Stockton facilities. Each class was six hours in length and provided plenty of information on emergency response and preparedness.

Rebecca Fontaine, the instructor for all five classes, was enthusiastic and patient with questions from Holt employees. Each class participant received student workbooks and viewed several videos on CPR and work place safety. Following the training employees were tested with hands-on simulated situations. Those who completed the training received CPR/AED and First Aid certification valid for two years.

The goal of this joint program with the American Heart Association was to suf-ficiently train Holt employees from each location in emergency response. Training opportunities like these are important not only for our employees but to also enhance the working environment here at Holt of California.

For any additional questions please contact Alicia Clark in Corporate Communications at 916.991.8362 (O), 916.870.4877 (C) or John Thomas at 916.991.8333 (O), 916.275.3520 (C).

Congratulations to Don Dewar! Don completed the Caterpillar certification training to become a 6 Sigma Master Black Belt. He completed a two-week Train the Trainer class taught by Caterpillar Master Black Belts in Lisle, Illinois. Don will be responsible for mentoring our current black belts and helping with developing and prioritizing 6 Sigma projects and 6 Sigma training.

Don Dewar started at Holt of California in May 1980 as a part-time graveyard shift computer operator while he finished his AA degree in computer science. After completing his degree, he took a full-time position as Computer Programming Manager with Holt. In 1986, he enrolled at California State University Stanislaus to obtain a BS degree in Accounting. After graduation in 1990, he was promoted to the position of Financial Accounting Manager. In 1999, Don left Holt of California to become the controller at Ironstone Vineyards in Murphys, CA. He returned to Holt in 2004 to pursue an opportunity as a 6 Sigma Black Belt. Congratulations again to Don for all his hard work!

Developing the Tools of Today, for a Brighter Tomorrow

Don Dewar, right with Scott Johnson of Caterpillar

The beginning of 2005 brought new challenges to the 6 Sigma team, including the start of the Route Delivery Project. Within a few months of embarking on this project, the mission developed into a new phase for Holt called the Delivery Tracking System.

This modernized plan is designed to implement an automated delivery tracking system. The system will help curb loss prevention by tracking items from their location of origin within Holt to their final destinations. Customers, both internal and external, will be able to view electronically generated delivery details (i.e. date, time, location etc.) and track their packages.

The Delivery Tracking System project is sponsored by Marty Davis and team members Al Lawson and Julie Navarro. The labels utilized in this project will contain unique barcodes to track the packages from original location to final destination. The scanning devices used with this system look similar to a Nextel phone and are very user-friendly. In addition to the barcodes, the team has designed a database to enter in non-parts packages. Non-parts packages include mail, computer hardware, service tooling, etc. The information entered into the system on non-parts packages will also print on the barcode label to prevent confusion.

The team will work diligently with the IT department to develop this database. Labels that are already printed for the parts packages will also be used during the Delivery Tracking project. Each label will have a barcode similar to what you see on a FedEx or UPS package. The label will be scanned when an item leaves the store and scanned in again when it reaches its final destination. The team has been testing the scanning devices on parts and inter-store packages for the past few weeks. The pilot program began in Stockton and the Pleasant Grove parts departments, and if successful will be implemented company-wide.

What will that improve? Having the right parts delivered to the right parts drop. Holt customers and employees will have the ability to alleviate any problems with delivery. This new system will save time and money and prevent lost packages, which in turn will only enhance our customer service.For more information you can contact 6 Sigma Black Belt Don Dewar at 916.991.8365 or ddewar@holtca.com.

6

s i g m a

6 SigmaCommentary

Watch out Ryan Beatie is preparing for a new

6 Sigma challenge!

With the sun barely peeking through Holt of California employees began setting up for the 2nd annual Camanche Hill Clay shooting event. In the distant land of Ione at 8:30am on April 28th, 2006 CRS customers lined up to register for a day of fun with their guns!

Sporting Clays is not an easy sport to master. Trying to shoot a clay pigeon in the air or rolling rabbit on the ground is anything but simple. Out in the field custom-ers were presented with a wide variety of targets that duplicate the flight path of game birds, such as flushing, crossing, incoming and other angling shots. Many customers showed their mastery shooting skills and shot with ease and precision. Customers moved in teams from one station to the next to complete the course. Most courses make use of natural features such as woods and ponds to create a realistic setting for each type of shot.

Customers’ luck of the draw ended around noon and the shooters were directed up the hill for lunch and raffles. Shooting about 17,000 rounds of ammunition these customers definitely worked up an appetite. Neto’s catered lunch and sup-plied about 140 lbs. of chicken and ribs along with all the trimmings. Underneath the tent customers enjoyed lunch and anticipated raffle prizes as Justin Relaford and John Johnson called ticket numbers. One lucky winner, Gary Woody from Brockman & Woody won his very own shotgun.

When asked to comment on the event Justin Relaford explained, “Our 2nd annual Camanche Hills customer event, keeps our customers talking for months ahead. The event is a tremendous value for Holt’s investment in its customers. The cus-tomers immediately following the event want to make sure they are on the invita-tion list for next year. Our response to that, Continue to be one of our all-impor-tant customers and your invitation is guaranteed.”

2006 Camanche hills clay shoot2nd annual

Have you ever 4-wheeled in a RTV Kubota? Darrell Weight

sure knew what he was doing as he plunged up and down the Camanche Hill trails. Talk about a

wild ride with pollen flying in your face while trying to keep your mouth closed so you didn’t inhale a swarm of bugs. There is always a first time for everything and this definitely was a memorable experience.

Scheduled facility visits for the Information Services Department has changed. All technicians will now e-mail facility managers prior to arrival. During the facility visits technicians will wear name badges to help with recognition. If an employee is not present while the technician is working on the PC, then the technician will leave a note with the work performed.

You, Me & ITInformation Services Update

Vacaville Now Open!

The new Vacaville store will enable Holt of California to grow its business. People like to do business with their neighbors; now that we are in Vacaville we can be considered a local, not just another Sacramento/Stockton based company. The new store is “state of the art” for Cat Rental with 3 drive through service bays, most of the yard in concrete (to prevent damage from tracks), a new “Dave Mott” designed wash rack. The facility is really well designed which took a lot of pre-planning by Ken Monroe, John Johnson, and Dave Mott. -Joe Turk

lexion pre-season kick offOn August 23rd, the Ag Division held a pre-harvest meeting and luncheon at the Yuba Sutter County Fairgrounds for their Lexion customers and qualified prospects. This meeting had a dual purpose. It provided an opportunity to educate current and prospective owners on proper harvester set-up and operation, while introducing the gathering to the world’s largest rice harvester, the all new Lexion 595R.

Attended by loyal owners and interested rice growers from Glenn, Butte, Sutter, Colusa, Yuba and Yolo counties, the meeting was centered around three harvester clinics led by our own highly qualified technicians Josh Hughes, Wes Howard and Greg Ramsey from the Yuba City store. Lexion and MacDon also participated in the event providing factory personnel for additional input and advice. Of special note in attendance was Russ Green, General Manager and Executive Vice President for Lexion North America.

Bob Gaschke, Product Specialist, spearheaded this event with major contributions from Kimberly Romberger, Pete Paterno and his merry band of technicians and Tammy McIntyre and Jessica Culp.

This pre-season kick off event provided customers with valuable insight from our Technicians from the Yuba City branch with mini information sessions. Wes Howard covered the various maintenance areas while Greg Ramsay discussed the cleaning and unloading systems. In addition, Josh Hughes provided insight on the feeding and threshing systems. Each technician spent about 20 to 30 minutes highlighting critical areas of adjustment, wear areas and grease points. The event received a lot of positive feedback regarding the depth of information provided by these three technicians.

“The largest and most efficient combine in the world is the Lexion Combine model 595. Class manufactures seven models of combines exclusively for Caterpillar dealers. Holt of California markets the two largest models, the 585 and 595. These units run on rubber tracks with rear wheel assist, and are currently sold mainly in the rice market. Holt has enjoyed a growing market share in this speciality market. Due partly to Lexion’s qual-ity and capacity. The second part of our offering is the unmatched ‘after-the-sale’ parts and service each owner receives. These machines exemplify the Caterpillar product and business philosophy of unparalleled quality, dependability, support, and sheer dominance in productivity.”-Bill George

“Was it a success? Time will tell, but at least one additional harvester sale has already been finalized as a result from the information provided at this meeting. With our largest turnout ever of competitive owners at this event, 2007 may just be our best year ever for Lexion sales.” -Tim Riley

Holt of California’s Human Resources organized and put together the BBQ’s in celebration for the 4th of July. Talk about yummy food from the marinated Tri-tip to the chocolate chip cookies. Employees from all locations lined up to dig into the scrumptious buffet. Bob Presley sure enjoyed the chocolate chip cookies. Check out the front cover of Holt Happenings and you can surely see the great time he had. When asked to comment Bob Presley explained, “The 4th of July is a wonderful holiday. We all should reflect upon the freedoms we enjoy, and thank those who protect them for us. I enjoy the food and fellow-ship each year and offer a hearty ‘thank you’ to Ken Monroe and the Holt of California management team for their generosity”.

4th of July BBQYum, Yum, can I have some?

Why do we celebrate the 4th of July?

On July 4, 1776, we claimed our independence from Britain and Democracy was born. Many come to the “land of the free and the home of the brave” to live their American Dream. The United States is truly a diverse nation made up of dynamic people. Each year on July 4, Americans celebrate that freedom and independence with barbecues, picnics, and family gatherings.

“The 4th of July barbecues are always a treat. It is a wonderful time to enjoy great food and the company of peers, set in a friendly atmosphere.”-Justin Relaford

HOLT OF CALIFORNIA SELECTS YUBA COLLEGE AUTOMOTIVE TECHNOLOGIES HONOREE

September 12, 2006

Holt of California has named Natalie Hughes, a graduating senior from Sutter High School, as the recipient of this year’s Holt Caterpillar Scholarship winner to the Yuba College Automotive Technologies program. According to Max Jones,Jr., of Holt’s Training Development unit, YubaCollege joins efforts initiated in 2001 by Holt, to fund scholarships in welding, diesel mechanics, and automotive engine repair at various colleges throughout the Central Valley.

Max Jones of HoltCaterpillar presented the

Scholarship

The Holt award of $1,000 per year is based both upon merit, an introductory essay, and ongoingperformance. Awardees are required to maintaina 3.0 GPA in their major while, at the same time,maintaining an overall 2.5 GPA in their collegecoursework. Funds are distributed to support tuitionand books, with an incentive bonus at the end of each successfully completed semester. Over five semesters, an honoree can potentiallyreceive up to $2,500 in overall college support from Holt.

Ms. Hughes is the first Yuba Collegerecipient of the scholarship under thiscompetitive format. She can continueto receive Holt support for up to fivesemesters. Working under the directionof Mike Morse and Bill Steen, Ms. Hughes should be ready to contribute to Holt upon her prospective graduation in2008-09.Automotive Professor Mike Morse with Scholarship

Recipient Natalie Hughes

Max Jones with Holt of California

Holt of California Earns “Dealer Excellence” Award

cat yellow, the new platinum

Holt of California’s Material Handling division has gone platinum! Our department is one of eight in the nation to earn the 2006 Platinum level “Dealer Excellence” award from Mitsubishi Caterpillar Forklifts of America (MCFA)! This high level of achievement places Holt of California in the top 10% of all dealers in the United States and Canada.

In order to obtain this status, the dealership had to perform at or above the forecast projected by MCFA and Holt of California executives. This included all aspects of our business, paying particular attention to customer service and increased revenue.

To be considered for this honor Holt had to adhere to several distinct criteria. These included: 5 Star customer service for the parts and service departments in 8 categories.

•Asset turnover for new equipment•Parts inventory turns•New equipment orders•Return on investment for rentals•Used equipment inventory turns•Accounts receivables aging•Gross profit and net profit•Overall growth in all departments

To thank everyone for all of their hard work, Holt of California invited all of the MHD employees and their families for a day at Waterworld and the California State Fair. This fun-filled day included all you can eat Bar-B-Que, endless water slides and carnival attractions. Nick Adams from MCFA in Houston came to represent the factory and make sure everyone had a great time. Congratulations to all of you who worked hard to make Holt of California one of the top Material Handling Dealers in the country!

Rain or shine it will be fine and that it was at Holt of California’s 2006 Employee Picnic. The sun began to shine through early morning at Micke Grove Park in Lodi. On Saturday May 20th, employees began to trickle in at the carnival like atmosphere provided by the Fun Company. This exciting shindig included games with prizes, a jumbo inflatable slide, bingo and numerous other attractions. Looking around you could see smiling faces, hear laughter and smell the mouth-watering BBQ. Passing the picture booth you could see a family cuddling together for a captured moment and close by taste the sweet blue and pink cotton candy.

Not too far from the area of festivities Holt employees gathered to play softball. Many Holt employees and family members signed up prior to the picnic with exciting anticipation of showing off their athletic ability. Thanks to Paul Sinogui these games ran smooth and everyone enjoyed several good times and showed great sportsmanship.

A day full of fun festivities, games and delicious food for Holt employees and their families!

h o l t o f c a l i f o r n i a2006 Employee picnic

“The CHEE relationship enables Holt and Caterpillar to have greater exposure to the engineering community. The seminar was well received and plans are being made to have another next summer”.-Rich Lund In a joint venture with Cutler Hammer Eaton Electric (CHEE),

Power Systems held a Consultant and Engineering Seminar on August 14th and 15th. Over 70 people attended the event including live demonstrations of the Caterpillar bat-tery-free rotary UPS, CAT/ISO paralleling switchgear, and the CHEE 40 foot demonstration van. The demonstration gave both Caterpillar and CHEE a chance to showcase their joint investment in the development of the CAT/ISO paralleling switchgear. The switchgear is designed to have multiple generators paralleled to one another and created a standby power grid. Industrial customers who require switchgears are hospitals, casinos, data centers, and water treatment plants. Many of the attendees specify and/or recommend CAT products for these applications.

Customers enjoyed lunch in a tent cooled by two 10-ton CAT air handlers. Most attendees had no idea Holt rented air handlers, chillers or other temperature control equip-ment. The seminar was intended to not only show custom-ers our improved product line, but also feature products that we sell and rent that many may not typically associate with CAT dealers.

power kudos!

power systems & chee

From the City of Vacaville“We are up on PG&E power as of yesterday afternoon (August 10) at about 1:20PM! Slightly less than 8 weeks have passed since the fire at our water plant, and we have an “Interim Panel!” KUDOS and THANKS HOLT Power……. Our guardian angels! Scott Stephens, John Quiring, and Vince Righetti are the professionals who moved mountains getting us up and running in a few hours back on June 16th.They also really KNOW how to produce and provide excellent customer ser-vice. Supermen… plain and simple. We also need to pass on “second round thanks” to Vince Righetti and to Jeff Borello who made our transition back to PG&E primary power happen yesterday. It is darn refreshing to have them there volunteering their expertise and assistance with the PG&E high power folks! It was a tough eight weeks make no mistake about it. But due to the efforts of all involved, we now have our Water Plant back on PG&E power. Please accept my personal thank you!” Best Regards,Grover Wright

Celebrating 75 Years of ExcellenceHolt of California commemorates company milestone

“I want to pass along the sincere thanks from our customers that came up to Stockton from the Los Banos and Merced areas. Everyone I talked to that night was extremely thankful and expressed their gratitude in being invited to such a special celebration.”-Joe Gomes

Celebrating 75 Years of ExcellenceHolt of California commemorates company milestone

“Just wanted to give all involved a great big THANK YOU!!!! The party was very well done!! Customers started calling me 7:00a.m. just to tell me what a great time they had.”-Richard Taylor

Countless hours, late nights and anticipation were spent in preparation for Holt of California 75th Anniversary celebration. Holt hosted two Anniversary parties. The first party was located in Woodland at the Heidrick Museum for customers in the north. A second celebration was held in Stockton at the Haggin Museum for our customers in the south. Each event displayed a wealth of Holt’s history and warmed customers with sincere gratification for their continued business. Upon arrival at the museum customers were directed to a welcome booth and given personalized name tags before entering the festivities. Walking into the exhibit customers became mesmerized at the great lengths Holt employees had taken to make the evening a truly memorable experience.

The two 75th Anniversary Celebration events were planned in a similar fashion. Each evening began with hors d’oeuvres and cocktails, allowing customers and Holt affiliates to mingle. Shortly thereafter customers were directed into an ar-ranged seating area where Holt President Ken Monroe, Victor Wykoff, Gordon Beatie and Gary Shaheen from Caterpillar addressed attendants. The speakers covered the rich history of Holt in the community and celebrated the company’s 75th anniversary. At the end of the speeches a special 75th anniversary video, produced by the Corporate Communications department, was shown expressing the company’s gratitude to the customers for their devoted business.

With the conclusion of the speeches customers and several Holt employees gath-ered in the museum for delicious appetizers and cocktails. Inside both museums several visual displays were arranged to show the long history between Benjamin Holt, Caterpillar and Holt of California.

As the evening came to a close and customers began to say their good-byes a sense of joy and pure delight filled the air for the celebration of Holt of California’s 75th Anniversary. Some of us will savor this moment as a frozen memory etched in time.