Dividend Declaration

Caterpillar Inc
09 June 2004

                                                                  June 9, 2004

FOR IMMEDIATE RELEASE


        Caterpillar Increases Dividend Rate For Second Time in 12 Months

           Nearly 1000 percent increase in annual dividend since 1993


PEORIA, Ill. (NYSE: CAT)Caterpillar Inc. (NYSE: CAT) today announced an 
11 percent increase in its quarterly cash dividend, the second increase in the 
past year.

Today's announcement increases the quarterly dividend by four cents to
41 cents per share of common stock ($1.64 annually), payable August 20, 2004, to
stockholders of record at the close of business July 20, 2004. Caterpillar has
increased its cash dividend eleven times - and nearly 1000 percent - since 1993, 
on a split-adjusted basis.


'Today's dividend increase is just one example of our ongoing commitment to 
improve shareholder value and deliver attractive returns on an investment in 
Caterpillar, said Chairman and Chief Executive Officer Jim Owens.  Caterpillar 
is a dynamic, profitable company committed to growth in every region of the 
world and in every industry we serve. Our strong financial position and cash 
flow, along with solid operational performance, should result in continued 
shareholder satisfaction. By approving this increase, the Board of Directors is 
reinforcing management's strong confidence in the company's future.'


Caterpillar contact:

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



                      This information is provided by RNS
            The company news service from the London Stock Exchange