Caterpillar Completes Acquisition of Shandong SEM Machinery Co…

QINGZHOU CITY, Feb. 1 /PRNewswire-AsiaNet/ –

Caterpillar will continue investing in employee development, product
improvements and customer support programs at SEM

Caterpillar Inc. (NYSE: CAT) has received final regulatory approval and
completed the purchase of the remaining shares of Shandong SEM Machinery (SEM),
a leading wheel loader manufacturer in China. Caterpillar purchased a minority
stake in SEM in 2005 as part of its commitment to support its growing customer
base in the Chinese construction equipment industry.

"Teamwork is one of Caterpillar’s core values, and since our initial
investment in SEM, we have collaborated with SEM management and with the
Shandong and Qingzhou City governments to make improvements in every aspect of
the SEM business," said Rich Lavin, Caterpillar group president with
responsibility for Caterpillar’s business in Asia Pacific. "Caterpillar has
worked together with SEM managers and employees to improve workplace safety,
employee training, operational excellence, product quality and the product
technology of SEM."

In addition to SEM wheel loaders, Caterpillar core products manufactured in
China include hydraulic excavators, track-type tractors, motor graders, paving
products, large diesel engines used primarily for marine and power generation
applications and generator sets for use in China and the Asia Pacific region.
Caterpillar also manufactures components at several facilities in China.

"We are pleased to be part of Team Caterpillar and look forward to
sustained growth as we continue to produce high quality products that will meet
customer’s expectations," said SEM Chairman Wang Chunquan. "We have built a
very solid foundation with Caterpillar based on mutual trust and respect, and
this strong relationship has benefited the Chinese customers who use SEM
products every day."

As a responsible corporate citizen, Caterpillar will continue working
closely with the provincial and local governments to sustainably develop the
SEM business and support the environment. Similarly, Caterpillar will build on
the valuable relationships SEM has with local suppliers and dealers.

"We are committed to bringing the greatest value possible to our SEM
customers," said Tom Bluth, Caterpillar vice president with responsibility for
Asia Pacific manufacturing operations. "We have already started by introducing
new models of SEM products and by providing customers with the ability to
finance equipment purchases through Caterpillar (China) Financial Leasing Co.,
Ltd."

In addition to its core machine, engine and component manufacturing
locations in China, Caterpillar operations in China also include logistics,
remanufacturing, financial leasing, training, marketing and research and
development. Caterpillar’s independent dealer network also provides sales and
product support to customers across greater China.

For more than 80 years, Caterpillar Inc. has been making progress possible
and driving positive and sustainable change on every continent. With 2007 sales
and revenues of $44.958 billion, Caterpillar is the world’s leading
manufacturer of construction and mining equipment, diesel and natural gas
engines and industrial gas turbines. The company also is a leading services
provider through Caterpillar Financial Services, Caterpillar Remanufacturing
Services, Caterpillar Logistics Services and Progress Rail Services. More
information is available at http://www.cat.com

SAFE HARBOR
Certain statements in this release relate to future events and expectations
and as such constitute forward-looking statements involving known and unknown
factors that may cause actual results of Caterpillar Inc. to be different from
those expressed or implied in the forward-looking statements. In this context,
words such as "will," "expect," "anticipate" or other similar words and phrases
often identify forward-looking statements made on behalf of Caterpillar. It is
important to note that actual results of the company may differ materially from
those described or implied in such forward-looking statements based on a number
of factors and uncertainties, including, but not limited to, changes in
economic conditions; currency exchange or interest rates; political stability;
market acceptance of the company’s products and services; significant changes
in the competitive environment; epidemic diseases; changes in law, regulations
and tax rates; and other general economic, business and financing conditions
and factors described in more detail in the company’s Form 10-K filed with the
Securities and Exchange Commission on February 23, 2007. This filing is
available on our website at http://www.cat.com/sec_filings. We do not undertake
to update our forward-looking statements.

SOURCE: Caterpillar Inc.

CONTACT: Jim Dugan,
Corporate Public Affairs of Caterpillar Inc.,
+1-309-494-4100, cell, +1-309-360-7311,
dugan_jim@cat.com, or

Kate Wang,
Corporate Public Affairs
of Caterpillar (China) Investment Co., Ltd.,
+(86-10) 5921 0112, cell, +(86) 1350 108 4027,
wang_kate@cat.com

Web site: http://www.CAT.com

(CAT)