EPA CERTIFIES FIRST ACERT CATERPILLA ENGINE FOR 2007.

Caterpillar Inc. (NYSE:CAT) has received certification from the U.S. Environmental Protection Agency (EPA) for the company's first engine equipped with ACERT Technology for 2007. This technology positions Caterpillar to meet future EPA emissions regulations and provides a long-term emissions solution for the global on-highway engine market.

"With this certification, Caterpillar has delivered on the promises made when we introduced ACERT Technology in 2002," said Jim Parker, vice president, Caterpillar Power Systems Marketing Division. "ACERT Technology has set a new industry standard for clean diesel technology, meeting the clean air goals we all support while maintaining the reliability, durability and minimal owning and operating costs that Cat engines traditionally have provided."

The first EPA-certified Caterpillar engine with ACERT Technology is the C7, a popular choice with customers who operate medium-duty vocational and delivery trucks. It will be in full production by January 1, 2007. The C7 is also widely used in a variety of other medium duty applications, including school buses, emergency vehicles and recreational vehicles.

ACERT Technology relies on four basic systems to lower emissions -- air management, precision combustion, advanced electronics and effective after- treatment. These four systems work to decrease particulate matter, oxides of nitrogen and hydrocarbon emissions while preserving the engine's reliability and durability, which keep owning and operating costs low.

Caterpillar has sold more than 450,000 on-highway engines with ACERT Technology to more than 46,000 customers since the technology was introduced in 2003. Customer acceptance of Cat engines is reflected in the company's unprecedented sixth J.D. Power and Associates Award, which Caterpillar received in 2006 for "Highest Customer Satisfaction With Vocational Heavy Duty Diesel Engines." No other engine manufacturer has ever won this customer feedback award, which measures customer satisfaction through J.D. Power's annual survey of vehicle owners who operate in typically rugged vocations and use vehicles such as dump trucks or garbage trucks. The Caterpillar C7 engine features an enhanced version of ACERT Technology that allows it to comply with the 2007 EPA regulations without sacrificing reliability, durability or fuel economy.

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 and industrial gas turbines. The company is a technology leader in construction, transportation, mining, forestry, energy, logistics, financing and electric power generation. Caterpillar is the leading manufacturer and supplier of truck and bus engines in the combined medium and heavy-duty categories in North America, holding the leading position in engine shipments to vehicle manufacturers since 1999.

For more information, visit http://www.cat.com or call 309/675-5813.