Caterpillar, Mitsubishi Heavy Industries and Shin Caterpillar Mitsubishi Announce...

Caterpillar, Mitsubishi Heavy Industries and Shin Caterpillar Mitsubishi
Announce Definitive Agreement For Japanese Joint Venture
Under share redemption plan, Caterpillar would become the majority shareholder
in Shin Caterpillar Mitsubishi Ltd. with an option to reach full ownership
after five years.

TOKYO, Japan, March 26 /PRNewswire-FirstCall/ -- Executives from
Caterpillar Inc. (NYSE: CAT), Mitsubishi Heavy Industries Ltd. (MHI) and Shin
Caterpillar Mitsubishi Ltd. (SCM) have signed definitive agreements that
include a share redemption plan which will result in Caterpillar owning 67
percent of SCM. The business will be renamed Caterpillar Japan when the first
phase of the deal closes, expected to be in the third quarter of 2008.
    The definitive agreements were signed at a ceremony in Tokyo attended by
Caterpillar Chairman and CEO Jim Owens, MHI President Kazuo Tsukuda, and
Shouichi Hirano, the President of SCM who is also expected to become the
President of Caterpillar Japan.
    The estimated value of the first phase of the share redemption is 50
billion JPY.  Under the terms of the agreement, SCM will redeem half of MHI's
shares in SCM.  Once the share redemption is completed, Caterpillar will own
67 percent of the outstanding shares of the business, and MHI will own the
remaining 33 percent. SCM also has an option, exercisable after five years, to
redeem the remaining shares owned by MHI, which if exercised, would make
Caterpillar the sole owner of SCM.
    "This is a strategic decision for Caterpillar, and it is an important part
of our comprehensive business strategy for competing and winning in the
rapidly expanding emerging markets of Asia and the Commonwealth of Independent
States," Owens said.  "Our joint venture with Mitsubishi Heavy Industries has
been remarkably successful, and moving forward, I'm confident that as SCM is
fully integrated with Caterpillar's core operations, our customers will see
greater benefits from this agreement," Owens said.
    The 50-50 joint venture between Caterpillar and Mitsubishi Heavy
Industries was formed 44 years ago.
    "Although MHI's shareholding stake in SCM will decrease as a result of the
change in ownership structure, MHI intends on further enhancing its value by
strategically focusing its management resources on MHI's core competency
businesses with high growth potential," said Kazuo Tsukuda, President of
Mitsubishi Heavy Industries.  "The trusted relationship we cultivated with
Caterpillar over the years will be maintained and further developed after this
transaction."
    SCM is primarily involved in the manufacture and sale of Caterpillar
branded hydraulic excavators, wheel loaders and track-type tractors.  SCM also
owns several retail and rental stores that provide Caterpillar products and
services in key markets in Japan.  SCM production facilities in Akashi and
Sagami are major manufacturing centers, providing Caterpillar products to Asia
and the world.  In addition, Shin Caterpillar Mitsubishi's hydraulic excavator
development center in Akashi is the global home for the development of
Caterpillar's hydraulic excavator product line.
    "SCM and its employees are proud to be part of Team Caterpillar, and this
agreement will allow SCM's manufacturing, design and process expertise to be
fully leveraged across the global Caterpillar enterprise," said Hirano.
    The agreement also outlines terms for the continuation of the broad-based
business relationship between Caterpillar and Mitsubishi Heavy Industries
following the share redemption.  The two companies will continue their
long-term relationship with a separate joint venture to manufacture and market
Caterpillar and Mitsubishi branded lift trucks, and they will also continue a
relationship in which MHI provides engines for some Caterpillar products.
    About Caterpillar:
    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.
    About Mitsubishi Heavy Industries:
    Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is
one of the world's leading heavy machinery manufacturers, with consolidated
sales of 3,068 billion yen in fiscal 2006 (year ended March 31, 2007). MHI's
diverse lineup of products and services encompasses shipbuilding, power
plants, chemical plants, environmental equipment, steel structures, industrial
and general machinery, aircraft, space rocketry and air-conditioning systems.
For more information, please visit the MHI website (http://www.mhi.co.jp).
    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 22, 2008. 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.

Jim Dugan of Caterpillar Corporate Public Affairs, +1-309-494-4100,
dugan_jim@cat.com