Dividend Declaration

Caterpillar Inc
13 June 2007


June 13, 2007


Caterpillar contact:
Rusty L. Dunn
Corporate Public Affairs
Caterpillar Inc.
309/675-4803
[e-mail]

FOR IMMEDIATE RELEASE


                  Caterpillar Raises Dividend Rate 20 Percent

PEORIA, Ill. - The Board of Directors of Caterpillar Inc. (NYSE: CAT) today
voted to again increase the quarterly cash dividend by six cents to thirty-six
cents ($0.36) per share of common stock, payable August 20, 2007, to
stockholders of record at the close of business on July 20, 2007.

'This increase reflects the Board of Directors' continued confidence in 
Caterpillar's long-term outlook,' said Caterpillar Chairman and Chief Executive 
Officer Jim Owens. 'Our broad global reach and business diversity are enabling 
our continued success, and we're pleased to reward our stockholders with 
consistent dividend growth. Team Caterpillar is on track to deliver future 
success throughout the company by using 6 Sigma to achieve our strategic goals 
of improved safety, quality, velocity and growth.'

The $0.36 dividend is an increase of 20 percent over the previous rate of $0.30
per share. This is the third consecutive year that Caterpillar has increased its
dividend by at least 20 percent. Caterpillar has paid higher dividends in each
of the last 14 years.

For more than 80 years, Caterpillar Inc. has been making progress possible and
driving positive and sustainable change on every continent. With 2006 sales and
revenues of $41.517 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.


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