Finning International Inc T.FTT

Sale of Instalment Note Portfolio

[Georgia_Straight]

Finning Announces Sale of Instalment Note Portfolio and Asset Securitization 12/3/02 VANCOUVER, BRITISH COLUMBIA, Dec 3, 2002 (CCNMatthews via COMTEX) -- Finning International Inc. ("Finning") announced today that it has agreed to sell substantially all of its conditional sales contract portfolio in Canada to Caterpillar Financial Services Limited ("CFSL"). The proceeds of the sale will be approximately C$100 million. At the same time, Finning also announced that it has entered into a securitization program for its accounts receivable portfolio in Canada. The program size is a maximum of C$120 million. Finning has sold C$30 million as an initial amount under the program, and is expecting to sell additional amounts in early 2003. Commenting on both transactions, Doug Whitehead, President and CEO of Finning noted: "The sale of the loan portfolio will generate close to C$100 million in cash that will be applied in the short term to reduce debt. Ultimately, the funds will be redeployed into new acquisitions, growth initiatives and other opportunities to increase value to our shareholders. The securitization of our accounts receivables will also free up cash on our balance sheet to be redeployed into similar opportunities. At the same time, this transaction is consistent with our overall strategy to access the most cost-effective methods of funding our business." Commenting on the sale of the instalment note portfolio, Ian Reid, President and COO of Finning (Canada) noted: "Finning (Canada), has provided loan financing to its customers in Canada for over 30 years. However, as part of our strategy to focus on our core business, we are pleased to be able to arrange the sale of the portfolio to our strategic partner, Caterpillar, through CFSL. CFSL will continue to provide the highest level of service to our customers for their loan financing needs." Finning International Inc. sells, rents, finances and provides customer support services for Caterpillar equipment and engines, and complementary equipment, in Western Canada, the U.K. and Chile. Finning announced on November 26, 2002 that it has entered agreements to acquire the Caterpillar dealerships in Argentina, Uruguay and Bolivia and that the transactions are expected to close within 60 days of that date. The corporation's Head Office is located in Vancouver, B.C., Canada. Finning International Inc. (www.finning.com) is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). This release contains forward-looking statements and information, which reflect the current view of Finning International Inc. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and Finning's actual results of operations could differ materially from historical results or current expectations. Finning assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize. Refer to Finning's annual report, management information circular, annual information form and other filings with the Ontario Securities Commission and Toronto Stock Exchange for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements contained in this report. Finning International Inc. Anthony R. Guglielmin Vice President and Corporate Treasurer [phone] [phone] (FAX) Email: [e-mail] Website: www.finning.com NEWS RELEASE TRANSMITTED BY CCNMatthews Copyright (C) 2002, Canadian Corporate News. All rights reserved.