Caterpillar Moves Asia Pacific Operations Headquarters to Beijing

Caterpillar Moves Asia Pacific Operations Headquarters to Beijing

November 21, 2006

Decision Aligns With Caterpillar's Enterprise Strategy

    BEIJING, Nov. 21 /Xinhua-PRNewswire/ -- Caterpillar
Inc. (NYSE: CAT) announced today it is moving its Asia
Pacific Operations headquarters to Beijing, China. 
Caterpillar Vice President Rich Lavin, who has
administrative responsibility for operations in
Caterpillar's Asia Pacific Division, will relocate from
Tokyo, Japan, to Caterpillar's Beijing offices as part of
this decision. 
      
    "Caterpillar is growing in China, and moving our
Asia Pacific Operations headquarters to Beijing will
provide a sharper focus for operational excellence for Team
Caterpillar," said Lavin.  "Operational and sales
success in China is a critical success factor for the
company's long-term growth and profitability. This move
will help us achieve those goals while contributing to the
growth, development and ever-improving quality of life in
China." 

    The Caterpillar Board of Directors elected Lavin vice
president of operations for the Asia Pacific Division
effective July 1, 2004.  In this role Lavin serves as
chairman of Shin Caterpillar Mitsubishi Ltd. and has
administrative responsibility for operations in the region,
including manufacturing facilities in China, India,
Indonesia and Japan.  Lavin's move to Beijing is effective
immediately.  Caterpillar's Asia Pacific Marketing Division
headquarters will remain based in Singapore. 

    In October of 2005, Caterpillar Chairman and CEO Jim
Owens outlined Caterpillar's new enterprise strategy and
goals for delivering Caterpillar's Vision 2020.  As part of
that strategy, China was listed as one of seven critical
success factors needed for Caterpillar to achieve its new
strategy.

    "China is clearly a key element of our future
strategy, and we are rapidly expanding our business in
support of the growing number of customers who are helping
to build, develop and modernize China's infrastructure and
economy," said Stu Levenick, Caterpillar group
president with responsibility for Asia.  "The movement
of our Asia Pacific Operations headquarters to China is a
clear indication of China's strategic importance to
Caterpillar and our desire to expand our manufacturing base
and enhance support for customers in this critical market
and elsewhere."   

    Today, Caterpillar operates 13 China-based 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 Caterpillar a
global leader.  The world's most populous nation has
undergone an economic growth and expansion that is
unprecedented in modern times, and expected future growth
in China makes it the single largest opportunity for
potential future sales for many Caterpillar products.

    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. 

    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 quarterly report filed on Form
10-Q with the Securities and Exchange Commission on
November 2, 2006.  We do not undertake to update our
forward-looking statements.  

    For more information, please contact:

     Jim Dugan
     Government Relations & Corporate Affairs
     Caterpillar (China) Investment Co., Ltd.
     Tel:    [phone]
     Mobile: [phone]
     Email:  [e-mail]

SOURCE  Caterpillar Inc.