Caterpillar Africa Pty. Ltd. Announces Boksburg Facility Closure

PEORIA, Illinois -

Caterpillar Inc. (NYSE: CAT) announced today that due to the global recession and to better align its global capacity with expected demand levels, Caterpillar Africa Pty. Ltd. will close its Boksburg, South Africa, manufacturing facility. The decision follows consultations with the unions and non-unionized employees that took place over the past two months. The consultations were done in full compliance with South African labor legislation and have concluded.

The closure will be completed by the end of August and work will be shifted to existing Caterpillar facilities. The decision to close Boksburg will impact 193 employees. Caterpillar is offering employees at Boksburg a severance package and training assistance.

“We regret this action is necessary, but it is in the long-term interests of our business,” said Chris Schena, Caterpillar vice president with responsibility for Europe, Africa and Middle East Operations. “I want to thank our Boksburg employees for their commitment during these past years and for the professional behavior during the past two months,” Schena added.

Caterpillar continues to aggressively respond to the very challenging global business environment. Caterpillar is making these decisions in order to enhance its competitiveness in the global market. The company and its dealers remain fully committed to providing customers in southern Africa with the sales and product support capabilities that they deserve and expect.

About Caterpillar:

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2008 sales and revenues of US$51.324 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 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,” “would,” “expect,” “anticipate,” “should” 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, (i) adverse change in general economic conditions; (ii) adverse change in the industries Caterpillar serves including construction, infrastructure, mining, energy, marine and electric power generation; (iii) Caterpillar’s ability to manage material, including steel, and freight costs; (iv) Caterpillar’s ability to generate cash from operations, secure external funding for its operations and manage its liquidity needs; (v) material adverse change in customers’ access to liquidity and capital; (vi) currency exchange or interest rates changes; (vii) political stability; (viii) market acceptance of the company’s products and services; (ix) significant changes in the competitive environment; (x) epidemic diseases; (xi) severe change in weather conditions negatively impacting operations; (xii) changes in law, regulations and tax rates; and (xiii) other general economic, business and financing conditions and factors described in more detail in the company’s Form 10-K filed with the Securities and Exchange Commission on February 20, 2009. This filing is available on our website at www.cat.com/sec_filings. We do not undertake to update our forward-looking statements.

Source: Caterpillar Inc.

Eric Amstutz, Director, EAME Public Affairs, Geneva, +41-22-849-44-66, Mobile, +41-78-833-44-66, amstutz_eric_m at cat.com, or Jim Dugan, Corporate Public Affairs, Peoria, +1-309-494-4100, Mobile, +1-309-360-7311, dugan_jim at cat.com, both of Caterpillar Inc.