Dividend Declaration

Caterpillar Inc
14 June 2006


June 14, 2006


FOR IMMEDIATE RELEASE


                  Caterpillar Raises Dividend Rate 20 Percent

PEORIA, Ill. - The Board of Directors of Caterpillar Inc. (NYSE: CAT) today
voted to increase the quarterly cash dividend by five cents to thirty cents
($0.30) per share of common stock, payable August 19, 2006, to stockholders of
record at the close of business on July 20, 2006. The $0.30 dividend is an
increase of 20 percent over the previous rate of $0.25 per share.

'Caterpillar expects 2006 to be its third consecutive year of record results,
and today's announcement reflects the Board of Directors' confidence in
Caterpillar's long-term outlook,' said Caterpillar Chairman and Chief Executive
Officer Jim Owens. 'Our 6 Sigma process focus is enabling us to leverage our
strong leadership position and grow our businesses while creating even greater
operating cash flow. We're pleased to be able to reward our stockholders with
another significant increase. Our future is bright, and all Caterpillar
employees are focused on delivering even better results over the next few
years.'

Including the announcement today, Caterpillar's cash dividend has tripled since
1996.

For more than 80 years, Caterpillar Inc. has been making progress possible and
driving positive and sustainable change on every continent. With 2005 sales and
revenues of $36.339 billion, Caterpillar is the world's leading manufacturer of
construction and mining equipment, diesel and natural gas engines and industrial
gas turbines. 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 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,'
'will,' 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
rates or political stability; market acceptance of the company's products and
services; significant changes in the competitive environment; 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 filings with
the Securities and Exchange Commission, including the financial release filed on
Form 8-K with the Securities and Exchange Commission on May 3, 2006. We do not
undertake to update our forward-looking statements.





                      This information is provided by RNS
            The company news service from the London Stock Exchange     
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