Caterpillar Announces the First-of-Its-Kind Electric Drive Track-Type Tractor

"The D7E offers a quantum leap in customer value through significant productivity increases and reduced owning and operating costs," said Mark Pflederer, vice president of Caterpillar's Heavy Construction & Mining Division. "This is another example of Caterpillar's global technology leadership and commitment to sustainable innovation which is not only good for our customers economics, but the environment as well."

From a performance standpoint, this new product demonstrates Caterpillar's commitment to the industry with a machine that does more work and consumes less fuel and parts while providing customers with lower operating costs. Caterpillar plans to commercially introduce the D7E in select markets during 2009.

"From an environmental sustainability perspective, the D7E uses substantially less fuel per hour -- dramatically reducing the amount of carbon dioxide emissions," said Caterpillar Group President Stu Levenick. "This revolutionary design consumes fewer resources over its working life than any other track-type tractor in its class. All major components are engineered to be rebuilt or reused in the future."

The D7E is in the 60,000-pound (27 000-kilogram) weight range and is powered by a Cat(R) C9 engine producing 235 horsepower (175 kilowatts). A traditional mechanical transmission is not needed, because the variable speed electric motors serve the function of a continuously variable transmission. The electric drive train has 60 percent fewer moving parts compared to previous D7s. The electric system also provides power to auxiliary components so that no engine belts are needed. The C9 engine, complete with ACERT(R) Technology, meets U.S. Tier 3 emissions standards, and the tractor has been designed with Tier 4 in mind. The new D7E has other innovative new features including an exclusive center-post cab, beltless engine and SystemOne(TM) undercarriage.

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.

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," " we are," "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.

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