Dividend Declaration

Caterpillar Inc
13 December 2006


December 13, 2006

FOR IMMEDIATE RELEASE


                    Caterpillar Inc. Maintains Dividend Rate

PEORIA, Ill. - Underlining the company's strong financial performance,
the Board of Directors of Caterpillar Inc. (NYSE: CAT) today declared a
quarterly cash dividend of 30 cents ($0.30) per share on its common stock,
payable February 20, 2007, to stockholders of record at the close of business
January 22, 2007.

Caterpillar stockholders have benefited from the company's strong
financial performance, with the quarterly dividend increasing 71 percent over
the past five years and tripling over the past 10 years. The 30 cent dividend
maintains the rate for the previous quarter and is 20 percent higher than a year
ago.

'The Caterpillar story is a positive one and has enabled the company to
pay attractive dividends which reflect our commitment to rewarding 
stockholders,' said Caterpillar Chairman and Chief Executive Officer Jim Owens.
'This will be the fourth consecutive year of double digit profit growth
and the third consecutive year of record sales and profit. Caterpillar
stockholders expect a good return on their investment, and we're proud
that the company's continued profitable growth and earnings stability
have delivered on that expectation.'

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, industrial gas turbines and a wide and growing offering of related
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' and 'expect' 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 Form 10-Q filed with the Securities and Exchange Commission on November 2,
2006. We do not undertake to update our forward-looking statements.



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