Caterpillar Demonstrates Rental Store Business for Chinese Customers Attending CONEXPO Asia

Caterpillar Demonstrates Rental Store Business for Chinese Customers Attending CONEXPO Asia

May 15, 2006

Rental Stores Part of Plan by Caterpillar and Its Dealers to Expand Customer Support and Product Offerings in China

    BEIJING, May 15 /Xinhua-PRNewswire/ -- Caterpillar Inc.
(NYSE: CAT) is formally introducing its proven rental store
concept to customers in China during the inaugural CONEXPO
Asia trade show taking place in Beijing.  In the first
three months of 2006, Caterpillar dealers have opened 12
Cat Rental Stores in China as part of Caterpillar's plan to
expand the level of service and product offerings to current
and potential new customers in China.

    "These Cat Rental Stores will give our Chinese
customers greater access to the machines and tools they
need -- for a few hours, a few days, or months at a time --
so they can complete the projects they are working on,"
said Rod Beeler, Caterpillar vice president for Asia Pacific
Marketing and chairman of the CONEXPO Asia management
committee.  "A customer coming into one of these new
rental stores will have the full product support they
expect from Caterpillar and its independent dealers,
including the option to rent, lease, or buy new or used
equipment and even to obtain financing from Caterpillar
China Financial Leasing."

    The Cat Rental Store has been tested and proven around
the world with more than 1,400 locations in 40 countries. 
For many equipment customers in China, the commercial
rental concept is a different way of conducting business.

    "In addition to providing our current customers in
China with even greater support, these Cat Rental Stores
will also give contractors in China the chance to 'test
drive' and learn more about Caterpillar products they might
not be familiar with, helping make them more productive in
their operations," Beeler said.  

    CONEXPO Asia 2006 is being held May 15-18 at the China
National Agricultural Exhibition Center in Beijing.  As
part of Caterpillar's 1,800-square-meter display at CONEXPO
Asia, the company has set up a full-size display of a Cat
Rental Store.   

    "This display will give our Chinese customers and
potential new customers a sense of how the Cat Rental Store
can be used as a tool to help these equipment owners better
plan for and manage costs for projects they may have,"
said M.C. Chan, Caterpillar China regional director. 
"The Cat Rental Store will let our customers benefit
from Caterpillar products and product support without
feeling the need to buy a new Caterpillar machine right
away."  
 
    Caterpillar has a long history in China. The company
sold its first products there in 1975 and opened an office
in Beijing in 1978. Beijing is home to Caterpillar's
marketing headquarters for China, and it is also the
headquarters for Cat China Financial Leasing.

    In the 1980s, Caterpillar launched technology transfer
agreements with Chinese manufacturers who began building
Caterpillar licensed products. Caterpillar's expansion in
China accelerated in the early 1990s with the establishment
of a more significant local production strategy.  Today,
Caterpillar operates 13 facilities -- both joint venture
and wholly owned businesses -- which, together with its
network of independent Caterpillar dealers, offer customers
in China the best-in-class products, services and support
that have made it a global leader.

    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 April
24, 2006.  We do not undertake to update our
forward-looking statements. 

    For more information, please contact:

     Jim Dugan, 
     Caterpillar Corporate Public Affairs
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Caterpillar Inc.