Dividend Declaration

Caterpillar Inc
08 October 2003


October 8, 2003

                      Caterpillar Increases Dividend Rate

PEORIA, Ill. -- Caterpillar Inc. (NYSE: CAT) today increased its quarterly cash
dividend by two cents to thirty-seven cents ($0.37) per share on its common
stock, payable November 20, 2003, to stockholders of record at the close of
business October 20, 2003. The previous rate was thirty-five cents ($0.35) per
share.

Including this increase, Caterpillar's quarterly dividend has grown more than
eightfold in the last decade on a split-adjusted basis.

Caterpillar contact:
Kelly Wojda
Corporate Public Affairs
309-675-1307
[e-mail]


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