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Caterpillar Announces Acquisition of Leading Brazilian Locomotive Component and Transit Car Services Company

MGE Equipamentos & Servicos Ferroviarios Ltda. will become part of Caterpillar's Progress Rail Services Division

PEORIA, Ill., June 24 /PRNewswire-FirstCall/ -- Caterpillar Inc. (NYSE: CAT), has reached an agreement to acquire all of the capital stock of MGE Equipamentos & Servicos Ferroviarios Ltda. (MGE). Based in Diadema and Hortolandia -- in Sao Paulo State, Brazil, MGE is a manufacturer and reconditioner of traction motors, main and auxiliary generators, control equipment and auxiliary components for locomotives and transit cars. In addition, MGE maintains, modernizes and rebuilds transit cars and locomotives. Customers include various transit authorities and railroads in South America. MGE is a market leader in the Brazilian market for the products and services it provides and is recognized for its quality and customer satisfaction. MGE will become part of Caterpillar's Progress Rail Services Division (Progress Rail).

The acquisition of MGE represents an important step in Progress Rail's international growth strategy, said Billy Ainsworth, Caterpillar vice president with responsibility for Progress Rail. We welcome the management and employees of MGE to Progress Rail and Team Caterpillar and look forward to serving MGE's existing customers as well as providing products and services to the rapidly growing rail and transit industry in South America.

Progress Rail is one of the largest integrated and diversified suppliers of railroad and transit system products and services in North America. These products and services include various types of rolling stock and track infrastructure. Headquartered in Albertville, Alabama, Progress Rail operates in more than 110 locations with 4,625 employees in the United States, Canada and Mexico. The acquisition of MGE is the first business expansion for Progress Rail outside of North America.

The continued growth of our service businesses is an important part of Caterpillar's Vision 2020 strategy, and the acquisition of MGE is a logical first step as Progress Rail expands its proven and successful business model outside of the North American market, said Steve Wunning, Caterpillar Group President.

Progress Rail and MGE see important synergies leveraging Progress Rail's extensive range of products and services, MGE's relationships with the Brazilian railroads and transit systems, and Caterpillar's relationships with Brazilian mining and construction industries. Caterpillar has had a presence in Brazil since 1954 and continues to invest in its Brazilian operations. Caterpillar's primary administrative and operational activities are located in the city of Piracicaba, State of Sao Paulo. In addition, Caterpillar and its independent dealer network in Brazil service and support an extensive range of construction and mining equipment operating in Brazil's large and growing mining and construction industries.

Ronaldo H. Moriyama and Carlos A.A. Roso, who were principal MGE shareholders, will continue to serve as co-managing directors reporting to Billy Ainsworth as part of Progress Rail.

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, 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-Q filed with the Securities and Exchange Commission on May 2, 2008. This filing is available on our website at http://www.cat.com/secfilings. We do not undertake to update our forward-looking statements.

SOURCE
Caterpillar Inc.

CONTACT:
Jim Dugan of Caterpillar Corporate Public Affairs, +1-309-494-4100, dugan_jim@cat.com