Caterpillar Chairman and CEO Jim Owens Updates Analysts on Execution of Corporate Strategy and Discusses Preliminary 2007 Outlook

LAFAYETTE, Ind., Nov. 3 /PRNewswire-FirstCall/ -- Caterpillar Chairman and Chief Executive Officer Jim Owens told a group of financial analysts and institutional stockholders that the company is clearly focused on executing its enterprise strategy, which puts a strong emphasis on safety, quality and velocity. On Friday at Caterpillar's Large Engine Center in Lafayette, Indiana, Owens and other members of the executive team presented an update of the company's machinery and engines businesses, and its preliminary outlook for 2007.

"The Caterpillar outlook is positive, and our expectations for the world economy support continued strength in most of the key industries we serve," said Owens. "2006 is expected to be the fourth consecutive year of double digit profit growth and the third consecutive year of record sales and profit. Our preliminary outlook for 2007 reflects another positive year with sales and revenues flat to up 5 percent and profit per share flat to 10 percent higher than 2006. As we execute our strategy and look forward to 2010, we see our goals as challenging but achievable -- they're our first set of hills to conquer."

Highlights of Owens' strategy update included: -- Line of sight to $50+ billion of sales and revenues by 2010 -- Profit per share growth in a range of 15 to 20 percent through 2010 -- Strong cash flow through the end of the decade to fund continued growth and reward stockholders with dividend growth -- Strong internal focus on safety, quality and velocity with implementation of the Caterpillar Production System -- Continued focus on products, technology and product support to deliver the best value to customers -- Strong growth in less cyclical service-related businesses

With the broadest product range in the industry, a worldwide manufacturing footprint and significant investment in products and technology, Owens reiterated that the company is confident it will deliver on the profitable growth goals laid out in Caterpillar's strategy.

"We are excited and ready to take on the challenges that are ahead," Owens said. "Caterpillar is actively investing in new technologies, products and product support to provide outstanding value to our customers worldwide. We've deployed our strategy across the company and value chain, and the name of the game is execution. This is a very positive story for our employees, our customers and our stockholders."

An archived replay of the webcast and presentation visuals is available at http://www.cat.com/investor . The transcript will also be filed with the U.S. Securities and Exchange Commission.

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/ .

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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 "expects," "anticipates," "intends," "plans," "believes," "seeks," "will" 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 quarterly report filed on Form 10-Q with the Securities and Exchange Commission on August 2, 2006. We do not undertake to update our forward-looking statements.