MAKING PROGRESS POSSIBLE

Caterpillar

Mike DeWaltDirector of Investor Relations

2SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES

LITIGATION REFORM ACT OF 1995

Certain statements contained in this presentation are forward-looking and involve risks, assumptions and uncertainties that cause actual results of Caterpillar to be materially different from those projected or implied in the forward looking statements. In this context, words such as "will", “believes,” “expects,” “estimates,”“anticipates,” “will be,” “should” and similar words or expressions identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of Caterpillar 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 Caterpillar'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.

A more complete summary of risks and uncertainties is described in more detail in Caterpillar's Form 10Q filed with the Securities and Exchange Commission on May 2, 2008. Caterpillar undertakes no obligation to update these forward-looking statements.

3

Caterpillar Overview

Sales & Revenues$45B in 2007

Sales and Costs

7%

30%

63%Machines

Engines

Financial Products

4% 9%

31%56%

Material Costs

Factory Labor &

Overhead

SG & AR&D

Machinery & EnginesOperating Costs $37B in 2007

4

Nonresidential

EnergyMining & Quarrying

Infrastructure Residential Industrial

ForestryWaste

End markets Machines

5From a mini-excavator that fits in

the back of a pick-up to … big ironMachines

Operator

6

On-HighwayTruck

Marine Industrial

Cat Machines PetroleumElectric Power

End markets Engines

7

… and everything in between

Model 3003

Model 3616

Engines

8

Sales and Revenues Synergistic growth & improved earnings stability

Products 64%

Integrated Services 36%

$29 Billion

$16 BillionSolar Customer Services

Genuine Cat Replacement Parts

2007 Sales and Revenues$45 Billion

9

Geographic Diversity

Caterpillar Dealers• 181 Cat dealers• 3,000+ branches & rental stores• Over 120,000 employees

The Global Leader

2007 1997

Geographic Mix - Sales and RevenuesCaterpillar• Broadest footprint in the industry• About 105,000 Employees• About 300 Facilities • In about 50 countries

OutsideNorth

America43%

NorthAmerica

57%

OutsideNorth

America56%

NorthAmerica

44%

10

6 Years of Growth

2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007

Sales and Revenues Earnings Per Share

$45$43

$36

$30

36% EPS CAGR 2002 to 2007

$23

$20

About $50 About $6.00

2008Outlook

2008Outlook

11

2008 Sales and Revenues

2nd Quarter Increase by Region

Growth is largely outside North America

Sales and Revenues were up $2.3 Billion …. or 20% vs. the 2nd Quarter of 2007

Consolidated $50B, up 11%

North America Flat to up 3%

EAME Up 10–15%

Asia Pacific Up 25-30%

Latin America Up 25-30%

2008 Full Year Outlook

12

2nd Quarter 2008 Results Record Sales & Revenues and EPS despite a very

weak US economy

13We expect another

record year despite U.S. weakness

2008 Outlook

14

Key Longer-term Trends Long-term Positive for Caterpillar

We expect continued strong growth in worldwide infrastructure

spending over the next decade

Significant growth in the developing world … and they have the money!

Significant need to improve and rebuild infrastructure in the developed world … after years of under investment

1515

Mining & Energy

• Growing demand, particularly from the developing world• Prolonged underinvestment in the 80’s and 90’s

A Very Positive Future

1616

Worldwide Mining Fleets

Source: Parker Bay.

65% 69%

50%56%54% 57%

Coal Mines Metals Mines

Crawlers Trucks Wheel Loaders

1,160

7,838 907

657

10,254 1,075

% of Machines More Than 10 Years Old (2007)

Replacement opportunity

Units

17

2.6

3.1

1.5

3.2

6.6

1.3

3.0 2.92.6

2.8

6.4

1.6

3.43.2

2.8

3.6

6.1

2.5

World North America EAME Latin America Asia Pacific Japan

1990 - 1999 2000 - 2008 2009 - 2017

World Economic Growth

Global infrastructure needs

Broadest product line

Global manufacturing footprintUnparalleled global dealer network

On a foundation of a large population of machines & engines

Our customers “Make Progress Possible”

No company is better positioned than Caterpillar

18

Valuation We are in an unusual position

• S&P 500 average PE is elevated

• Cat’s PE is 10-11 … at the low end of our historic range.

Profits have fallen faster than stock prices … as usual for an economic downturn

Low PE at Cat usually reflects a peak. Current situation is:

• US machine sales to end users are in the 3rd year of significant decline.

• European sales to users declining

• Asia, Africa, Middle East, CIS, Latin America are very strong

• Energy and Mining strong worldwide

Questions?