/FIRST AND FINAL ADD -- AQF006 -- CATERPILLAR EARNINGS/

    GLOSSARY OF TERMS

    1.    Cat Production System (CPS)  - The Caterpillar Production System is
          the common Order-to-Delivery process being implemented enterprise-
          wide to achieve our safety, quality and velocity goals for 2010 and
          beyond.

    2.    Consolidating Adjustments - Eliminations of transactions between
          Machinery and Engines and Financial Products.

    3.    Core Operating Costs - Machinery and Engines variable manufacturing
          cost change adjusted for volume and change in period costs.
          Excludes the impact of currency.

    4.    Currency - With respect to sales and revenues, currency represents
          the translation impact on sales resulting from changes in foreign
          currency exchange rates versus the U.S. dollar.  With respect to
          operating profit, currency represents the net translation impact on
          sales and operating costs resulting from changes in foreign currency
          exchange rates versus the U.S. dollar.  Currency includes the
          impacts on sales and operating profit for the Machinery and Engines
          lines of business only; currency impacts on Financial Products
          revenues and operating profit are included in the Financial Products
          portions of the respective analyses.  With respect to other
          income/expense, currency represents the effects of forward and
          option contracts entered into by the company to reduce the risk of
          fluctuations in exchange rates and the net effect of changes in
          foreign currency exchange rates on our foreign currency assets and
          liabilities for consolidated results.

    5.    Diversified Service Businesses - A service business or a business
          containing an important service component.  These businesses
          include, but are not limited to, aftermarket parts, Cat Financial,
          Cat Insurance, Cat Logistics, Cat Reman, Progress Rail, OEM
          Solutions and Solar Turbine Customer Services.

    6.    EAME - Geographic region including Europe, Africa, the Middle East
          and the Commonwealth of Independent States (CIS).

    7.    Earning Assets - These assets consist primarily of total finance
          receivables net of unearned income, plus equipment on operating
          leases, less accumulated depreciation at Cat Financial.

    8.    Engines - A principal line of business including the design,
          manufacture, marketing and sales of engines for Caterpillar
          machinery; electric power generation systems; on-highway vehicles
          and locomotives; marine, petroleum, construction, industrial,
          agricultural and other applications; and related parts.  Also
          includes remanufacturing of Caterpillar engines and a variety of
          Caterpillar machine and engine components and remanufacturing
          services for other companies.  Reciprocating engines meet power
          needs ranging from 5 to 21,500 horsepower (4 to more than 16 000
          kilowatts).  Turbines range from 1,600 to 20,500 horsepower (1 200
          to 15 000 kilowatts).

    9.    Financial Products - A principal line of business consisting
          primarily of Caterpillar Financial Services Corporation (Cat
          Financial), Caterpillar Insurance Holdings, Inc. (Cat Insurance),
          Caterpillar Power Ventures Corporation (Cat Power Ventures) and
          their respective subsidiaries.  Cat Financial provides a wide range
          of financing alternatives to customers and dealers for Caterpillar
          machinery and engines, Solar gas turbines as well as other equipment
          and marine vessels.  Cat Financial also extends loans to customers
          and dealers.  Cat Insurance provides various forms of insurance to
          customers and dealers to help support the purchase and lease of our
          equipment.  Cat Power Ventures is an investor in independent power
          projects using Caterpillar power generation equipment and services.

    10.   Latin America - Geographic region including Central and South
          American countries and Mexico.

    11.   Machinery - A principal line of business which includes the design,
          manufacture, marketing and sales of construction, mining and
          forestry machinery-track and wheel tractors, track and wheel
          loaders, pipelayers, motor graders, wheel tractor-scrapers, track
          and wheel excavators, backhoe loaders, log skidders, log loaders,
          off-highway trucks, articulated trucks, paving products, skid steer
          loaders and related parts. Also includes logistics services for
          other companies and the design, manufacture, remanufacture,
          maintenance and services of rail-related products.

    12.   Machinery and Engines (M&E) - Due to the highly integrated nature of
          operations, it represents the aggregate total of the Machinery and
          Engines lines of business and includes primarily our manufacturing,
          marketing and parts distribution operations.

    13.   Manufacturing Costs - Manufacturing costs represent the volume-
          adjusted change for variable costs and the absolute dollar change
          for period manufacturing costs.  Variable manufacturing costs are
          defined as having a direct relationship with the volume of
          production.  This includes material costs, direct labor and other
          costs that vary directly with production volume such as freight,
          power to operate machines and supplies that are consumed in the
          manufacturing process.  Period manufacturing costs support
          production but are defined as generally not having a direct
          relationship to short-term changes in volume.  Examples include
          machine and equipment repair, depreciation on manufacturing assets,
          facility support, procurement, factory scheduling, manufacturing
          planning and operations management.

    14.   M&E Other Operating Expenses - Comprised primarily of gains (losses)
          on disposal of long-lived assets, long-lived asset impairment
          charges and impairment of goodwill.

    15.   Operating Profit - Sales and revenues minus operating costs.

    16.   Period Costs - Comprised of Machinery and Engines period
          manufacturing costs, SG&A expense and R&D expense.

    17.   Price Realization - The impact of net price changes excluding
          currency and new product introductions.  Consolidated price
          realization includes the impact of changes in the relative weighting
          of sales between geographic regions.

    18.   Profit - Consolidated profit before taxes less provision for income
          taxes plus equity in profit (loss) of unconsolidated affiliated
          companies.

    19.   Sales Volume - With respect to sales and revenues, sales volume
          represents the impact of changes in the quantities sold for
          machines, engines and parts as well as the incremental revenue
          impact of new product introductions.  With respect to operating
          profit, sales volume represents the impact of changes in the
          quantities sold for machines, engines and parts combined with
          product mix-the net operating profit impact of changes in the
          relative weighting of machines, engines and parts sales with respect
          to total sales.

    20.   6 Sigma - On a technical level, 6 Sigma represents a measure of
          variation that achieves 3.4 defects per million opportunities.  At
          Caterpillar, 6 Sigma represents a much broader cultural philosophy
          to drive continuous improvement throughout the value chain.  It is a
          fact-based, data-driven methodology that we are using to improve
          processes, enhance quality, cut costs, grow our business and deliver
          greater value to our customers through Black Belt-led project teams.
          At Caterpillar, 6 Sigma goes beyond mere process improvement-it has
          become the way we work as teams to process business information,
          solve problems and manage our business successfully.

NON-GAAP FINANCIAL MEASURES

The following definition is provided for "non-GAAP financial measures" in connection with Regulation G issued by the Securities and Exchange Commission. This non-GAAP financial measure has no standardized meaning prescribed by U.S. GAAP and therefore is unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend this item to be considered in isolation or as a substitute for the related GAAP measure.

MACHINERY AND ENGINES

Caterpillar defines Machinery and Engines as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. Machinery and Engines information relates to the design, manufacture and marketing of our products. Financial Products information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment. The nature of these businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. We also believe this presentation will assist readers in understanding our business. Pages 29-34 reconcile Machinery and Engines with Financial Products on the equity basis to Caterpillar Inc. Consolidated financial information.

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-K filed with the Securities and Exchange Commission on February 23, 2007. This filing is available on our website at www.cat.com/sec_filings. We do not undertake to update our forward-looking statements.

Caterpillar's latest financial results and current outlook are also available via:

    Telephone:
    (800) 228-7717 (Inside the United States and Canada)
    (858) 244-2080 (Outside the United States and Canada)

    Internet:
    http://www.cat.com/investorhttp://www.cat.com/irwebcast (live broadcast/replays of quarterly
    conference call)




                               Caterpillar Inc.
          Condensed Consolidated Statement of Results of Operations
                                 (Unaudited)
                 (Dollars in millions except per share data)

                                    Three Months Ended    Six Months Ended
                                          June 30,            June 30,
                                      2007       2006      2007      2006

    Sales and revenues:
      Sales of Machinery
       and Engines                   $10,613    $9,956   $19,934   $18,699
      Revenues of
       Financial Products                743       649     1,438     1,298
      Total sales and revenues        11,356    10,605    21,372    19,997

    Operating costs:
      Cost of goods sold               8,300     7,416    15,436    13,968
      Selling, general and
       administrative expenses           968       881     1,858     1,702
      Research and development
       expenses                          350       343       690       650
      Interest expense of
       Financial Products                279       256       550       488
      Other operating expenses           246       230       485       492
      Total operating costs           10,143     9,126    19,019    17,300

    Operating profit                   1,213     1,479     2,353     2,697

      Interest expense excluding
       Financial Products                 80        66       159       134
      Other income (expense)              70        50       181        93

    Consolidated profit before taxes   1,203     1,463     2,375     2,656

      Provision for income taxes         385       449       760       819
      Profit of consolidated companies   818     1,014     1,615     1,837

      Equity in profit (loss) of
       unconsolidated affiliated
       companies                           5        32        24        49

    Profit                              $823    $1,046    $1,639    $1,886

    Profit per common share            $1.28     $1.58     $2.55     $2.83

    Profit per common share -
     diluted (1)                       $1.24     $1.52     $2.47     $2.72

    Weighted average common
     shares outstanding (millions)
     - Basic                           640.5     662.1     642.4     666.7
     - Diluted (1)                     662.8     688.5     664.3     693.8

    Cash dividends declared
     per common share                   $.66      $.55      $.66      $.55


    (1) Diluted by assumed exercise of stock-based compensation awards using
        the treasury stock method.



                               Caterpillar Inc.
            Condensed Consolidated Statement of Financial Position
                                 (Unaudited)
                            (Millions of dollars)

    Assets                                               June 30,    Dec. 31,
      Current assets:                                      2007        2006
        Cash and short-term investments                    $562       $530
        Receivables - trade and other                     7,835      8,607
        Receivables - finance                             6,821      6,804
        Deferred and refundable income taxes              1,055        733
        Prepaid expenses and other current assets           751        638
        Inventories                                       7,106      6,351
      Total current assets                               24,130     23,663

      Property, plant and equipment - net                 9,127      8,851
      Long-term receivables - trade and other               706        860
      Long-term receivables - finance                    12,711     11,531
      Investments in unconsolidated
       affiliated companies                                 551        562
      Noncurrent deferred and refundable
       income taxes                                       2,111      1,949
      Intangible assets                                     467        387
      Goodwill                                            1,937      1,904
      Other assets                                        1,766      1,742
    Total assets                                        $53,506    $51,449

    Liabilities
      Current liabilities:
        S

Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation.



                               Caterpillar Inc.
                Condensed Consolidated Statement of Cash Flow
                                 (Unaudited)
                            (Millions of dollars)

                                                          Six Months Ended
                                                              June 30,
    Cash flow from operating activities:                  2007        2006
      Profit                                             $1,639     $1,886
      Adjustments for non-cash items:
        Depreciation and amortization                       849        802
        Other                                                71         94
      Changes in assets and liabilities:
        Receivables - trade and other                       987       (762)
        Inventories                                        (691)      (755)
        Accounts payable and accrued expenses               (46)       356
        Other assets - net                                 (300)        23
        Other liabilities - net                             727        277
    Net cash provided by (used for)
     operating activities                                 3,236      1,921

    Cash flow from investing activities:
      Capital expenditures - excluding
       equipment leased to others                          (582)      (552)
      Expenditures for equipment leased to others          (621)      (532)
      Proceeds from disposals of property,
       plant and equipment                                  208        319
      Additions to finance receivables                   (6,356)    (5,114)
      Collections of finance receivables                  5,233      4,079
      Proceeds from the sale of finance receivables          84        980
      Investments and acquisitions
       (net of cash acquired)                              (174)      (419)
      Proceeds from sale of available-for-sale
       securities                                           119        219
      Investments in available-for-sale securities         (217)      (296)
      Other - net                                           285        167
    Net cash provided by (used for)
     investing activities                                (2,021)    (1,149)

    Cash flow from financing activities:
      Dividends paid                                       (386)      (335)
      Common stock issued, including
       treasury shares reissued                             223        349
      Treasury shares purchased                          (1,017)    (2,411)
      Excess tax benefit from stock-based
       compensation                                          97        147
      Proceeds from debt issued (original
       maturities greater than three months)              5,259      5,033
      Payments on debt (original maturities
       greater than three months)                        (5,453)    (5,595)
      Short-term borrowings (original maturities
       three months or less)--net                            86      1,564
    Net cash provided by (used for)
     financing activities                                (1,191)    (1,248)
    Effect of exchange rate changes on cash                   8         16
    Increase (decrease) in cash and
     short-term investments                                  32       (460)

    Cash and short-term investments at
     beginning of period                                    530      1,108
    Cash and short-term investments at end of period       $562       $648

Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation.

All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.



                               Caterpillar Inc.
                 Supplemental Data for Results of Operations
                   For The Three Months Ended June 30, 2007
                                 (Unaudited)
                            (Millions of dollars)

                                            Supplemental Consolidating Data
                                         Machinery    Financial  Consolidating
                         Consolidated  and Engines(1)  Products   Adjustments

    Sales and revenues:
      Sales of Machinery
       and Engines         $10,613      $10,613          $--        $--
      Revenues of
       Financial Products      743           --          846       (103)(2)
      Total sales and
       revenues             11,356       10,613          846       (103)

    Operating costs:
      Cost of goods sold     8,300        8,300           --         --
      Selling, general and
       administrative
       expenses                968          853          120         (5)(3)
      Research and
       development expenses    350          350           --         --
      Interest expense of
       Financial Products      279           --          279         --
      Other operating
       expenses                246          (10)         263         (7)(3)
      Total operating costs 10,143        9,493          662        (12)

    Operating profit         1,213        1,120          184        (91)

      Interest expense
       excluding Financial
       Products                 80           83           --         (3)(4)
      Other income (expense)    70          (36)          18         88(5)

    Consolidated profit
     before taxes            1,203        1,001          202         --

      Provision for
       income taxes            385          316           69         --
      Profit of consolidated
       companies               818          685          133         --
      Equity in profit (loss)
       of unconsolidated
       affiliated companies      5            4            1         --

      Equity in profit of
       Financial Products'
       subsidiaries             --          134           --       (134)(6)
    Profit                    $823         $823         $134      $(134)

    (1) Represents Caterpillar Inc. and its subsidiaries with Financial
        Products accounted for on the equity basis.

    (2) Elimination of Financial Products' revenues earned from Machinery and
        Engines.

    (3) Elimination of net expenses recorded by Machinery and Engines paid to
        Financial Products.

    (4) Elimination of interest expense recorded between Financial Products
        and Machinery and Engines.

    (5) Elimination of discount recorded by Machinery and Engines on
        receivables sold to Financial Products and of interest earned between
        Machinery and Engines and Financial Products.

    (6) Elimination of Financial Products' profit due to equity method of
        accounting.



                               Caterpillar Inc.
                 Supplemental Data for Results of Operations
                   For The Three Months Ended June 30, 2006
                                 (Unaudited)
                            (Millions of dollars)

                                            Supplemental Consolidating Data
                                         Machinery    Financial  Consolidating
                         Consolidated  and Engines(1)  Products   Adjustments

    Sales and revenues:
      Sales of Machinery
       and Engines          $9,956       $9,956          $--        $--
      Revenues of Financial
       Products                649           --          768       (119)(2)
      Total sales and
       revenues             10,605        9,956          768       (119)

    Operating costs:
      Cost of goods sold     7,416        7,416           --         --
      Selling, general and
       administrative
       expenses                881          777          113         (9)(3)
      Research and
       development expenses    343          343           --         --
      Interest expense of
       Financial Products      256           --          259         (3)(4)
      Other operating
       expenses                230          (1)          239         (8)(3)
      Total operating costs  9,126        8,535          611        (20)

    Operating profit         1,479        1,421          157        (99)

      Interest expense
       excluding Financial
       Products                 66          70            --         (4)(4)
      Other income (expense)    50         (80)           35         95(5)

    Consolidated profit
     before taxes            1,463        1,271          192         --
      Provision for
       income taxes            449          384           65         --
      Profit of consolidated

       companies             1,014          887          127         --

      Equity in profit (loss)
       of unconsolidated
       affiliated companies     32           32           --         --
      Equity in profit of
       Financial Products'
       subsidiaries             --          127           --       (127)(6)
    Profit                  $1,046       $1,046         $127      $(127)

    (1) Represents Caterpillar Inc. and its subsidiaries with Financial
        Products accounted for on the equity basis.

    (2) Elimination of Financial Products' revenues earned from Machinery and
        Engines.

    (3) Elimination of net expenses recorded by Machinery and Engines paid to
        Financial Products.

    (4) Elimination of interest expense recorded between Financial Products
        and Machinery and Engines.

    (5) Elimination of discount recorded by Machinery and Engines on
        receivables sold to Financial Products and of interest earned between
        Machinery and Engines and Financial Products.

    (6) Elimination of Financial Products' profit due to equity method of
        accounting.



                               Caterpillar Inc.
                 Supplemental Data for Results of Operations
                    For The Six Months Ended June 30, 2007
                                 (Unaudited)
                            (Millions of dollars)

                                            Supplemental Consolidating Data
                                         Machinery    Financial  Consolidating
                         Consolidated  and Engines(1)  Products   Adjustments
    Sales and revenues:
      Sales of Machinery
       and Engines         $19,934      $19,934          $--        $--
      Revenues of Financial
       Products              1,438           --        1,645       (207)(2)
      Total sales and
       revenues             21,372       19,934        1,645       (207)

    Operating costs:
      Cost of goods sold    15,436       15,436           --         --
      Selling, general and
       administrative
       expenses              1,858        1,638          230        (10)(3)
      Research and
       development expenses    690          690           --         --
      Interest expense of
       Financial Products      550           --          551         (1)(4)
      Other operating
       expenses                485          (14)         513        (14)(3)
      Total operating
       costs                19,019       17,750        1,294        (25)
    Operating profit         2,353        2,184          351       (182)

      Interest expense
       excluding Financial
       Products                159          163           --        (4)(4)
      Other income (expense)   181          (36)          39       178(5)

    Consolidated profit
     before taxes            2,375        1,985          390        --

      Provision for
       income taxes            760          629          131        --
      Profit of consolidated
       companies             1,615        1,356          259        --

      Equity in profit
       (loss) of
       unconsolidated
       affiliated companies     24           22            2        --
      Equity in profit of
       Financial Products'
       subsidiaries             --          261           --      (261)(6)
    Profit                  $1,639       $1,639         $261     $(261)

    (1) Represents Caterpillar Inc. and its subsidiaries with Financial
        Products accounted for on the equity basis.

    (2) Elimination of Financial Products' revenues earned from Machinery and
        Engines.

    (3) Elimination of net expenses recorded by Machinery and Engines paid to
        Financial Products.

    (4) Elimination of interest expense recorded between Financial Products
        and Machinery and Engines.

    (5) Elimination of discount recorded by Machinery and Engines on
        receivables sold to Financial Products and of interest earned between
        Machinery and Engines and Financial Products.

    (6) Elimination of Financial Products' profit due to equity method of
        accounting.



                               Caterpillar Inc.
                 Supplemental Data for Results of Operations
                    For The Six Months Ended June 30, 2006
                                 (Unaudited)
                            (Millions of dollars)

                                            Supplemental Consolidating Data
                                         Machinery    Financial  Consolidating
                         Consolidated  and Engines(1)  Products   Adjustments
    Sales and revenues:
      Sales of Machinery
       and Engines         $18,699      $18,699          $--        $--
      Revenues of Financial
       Products              1,298           --        1,514       (216)(2)
      Total sales and
       revenues             19,997       18,699        1,514       (216)

    Operating costs:
      Cost of goods sold    13,968       13,968           --         --
      Selling, general and
       administrative
       expenses              1,702        1,501          216        (15)(3)
      Research and
       development expenses    650          650           --         --
      Interest expense of
       Financial Products      488           --          492         (4)(4)
      Other operating
       expenses                492           28          479        (15)(3)
      Total operating costs 17,300       16,147        1,187        (34)


    Operating profit         2,697        2,552          327       (182)

      Interest expense
       excluding Financial
       Products                134          138           --         (4)(4)
      Other income (expense)    93        (131)           46        178(5)

    Consolidated profit
     before taxes            2,656        2,283          373         --

      Provision for income
       taxes                   819          693          126         --
      Profit of consolidated
       companies             1,837        1,590          247         --
      Equity in profit
       (loss) of
       unconsolidated
       affiliated companies     49           48            1         --
      Equity in profit of
       Financial Products'
       subsidiaries             --          248           --       (248)(6)
    Profit                  $1,886       $1,886         $248      $(248)

    (1) Represents Caterpillar Inc. and its subsidiaries with Financial
        Products accounted for on the equity basis.

    (2) Elimination of Financial Products' revenues earned from Machinery and
        Engines.

    (3) Elimination of net expenses recorded by Machinery and Engines paid to
        Financial Products.

    (4) Elimination of interest expense recorded between Financial Products
        and Machinery and Engines.

    (5) Elimination of discount recorded by Machinery and Engines on
        receivables sold to Financial Products and of interest earned between
        Machinery and Engines and Financial Products.

    (6) Elimination of Financial Products' profit due to equity method of
        accounting.



                               Caterpillar Inc.
                       Supplemental Data for Cash Flow
                    For The Six Months Ended June 30, 2007
                                 (Unaudited)
                            (Millions of dollars)

                                            Supplemental Consolidating Data
                                         Machinery    Financial  Consolidating
                         Consolidated  and Engines(1)  Products   Adjustments

    Cash flow from operating
     activities:
      Profit                $1,639       $1,639         $261      $(261)(2)
      Adjustments for
       non-cash items:
        Depreciation and
         amortization          849          512          337         --
        Undistributed profit
         of Financial Products  --         (261)          --        261(3)
        Other                   71           47         (146)       170(4)
      Changes in assets

       and liabilities:
        Receivables - trade
         and other             987          (57)         (20)     1,064(4/5)
        Inventories           (691)        (691)          --         --
        Accounts payable
         and accrued
         expenses              (46)        (146)          36         64(4)
        Other assets - net    (300)        (255)           2        (47)(4)
        Other liabilities
         - net                 727          689            8         30(4)
    Net cash provided by
     (used for) operating
     activities              3,236        1,477          478      1,281
    Cash flow from
     investing activities:
      Capital expenditures
       - excluding equipment
       leased to others       (582)        (575)          (7)        --
      Expenditures for
       equipment leased
       to others              (621)          --         (627)         6(4)
      Proceeds from disposals
       of property, plant
       and equipment           208           13          196         (1)(4)
      Additions to finance
       receivables          (6,356)          --      (17,369)    11,013(5)
      Collections of
       finance receivables   5,233           --       16,846    (11,613)(5)
      Proceeds from the sale
       of finance receivables   84           --          777       (693)(5)
      Net intercompany
       borrowings               --           35          (29)        (6)(6)
      Investments and
       acquisitions (net
       of cash acquired)      (174)        (181)          --          7(7)
      Proceeds from sale of
       available-for-sale
       securities              119            7          112         --
      Investments in
       available-for-sale
       securities             (217)          (8)        (209)        --
      Other - net              285           81          206         (2)(7)
    Net cash provided by
     (used for) investing
     activities             (2,021)        (628)        (104)    (1,289)
    Cash flow from
     financing activities:
      Dividends paid          (386)        (386)          --         --
      Common stock issued,
       including treasury
       shares reissued         223          223           (2)         2(7)
      Treasury shares
       purchased            (1,017)      (1,017)          --         --
      Excess tax benefit
       from stock-based
       compensation             97           97           --         --
      Net intercompany
       borrowings               --           29          (35)         6(6)
      Proceeds from debt
       issued (original
       maturities greater
       than three months)    5,259           43        5,216         --
      Payments on debt
       (original maturities

       greater than
       three months)        (5,453)         (49)      (5,404)        --
      Short-term borrowings
       (original maturities
       three months or
       less)--net               86          267         (181)        --
    Net cash provided by
     (used for) financing
     activities             (1,191)        (793)        (406)         8
    Effect of exchange
     rate changes on cash        8            4            4         --
    Increase (decrease) in
     cash and short-term
     investments                32           60          (28)        --
    Cash and short-term
     investments at beginning
     of period                 530          319          211         --
    Cash and short-term
     investments at end
     of period                $562         $379         $183        $--

    (1) Represents Caterpillar Inc. and its subsidiaries with Financial
        Products accounted for on the equity basis.

    (2) Elimination of Financial Products' profit after tax due to equity
        method of accounting.

    (3) Non-cash adjustment for the undistributed earnings from Financial
        Products.

    (4) Elimination of non-cash adjustments and changes in assets and
        liabilities related to consolidated reporting.

    (5) Reclassification of Cat Financial's cash flow activity from investing
        to operating for receivables that arose from the sale of inventory.

    (6) Net proceeds and payments to/from Machinery and Engines and Financial
        Products.

    (7) Change in investment and common stock related to Financial Products.



                               Caterpillar Inc.
                       Supplemental Data for Cash Flow
                    For The Six Months Ended June 30, 2006
                                 (Unaudited)
                            (Millions of dollars)

                                            Supplemental Consolidating Data
                                         Machinery    Financial  Consolidating
                         Consolidated  and Engines(1)  Products   Adjustments
    Cash flow from
     operating activities:
      Profit                $1,886       $1,886         $248      $(248)(2)
      Adjustments for
       non-cash items:
        Depreciation and
         amortization          802          470          332         --
        Undistributed profit
         of Financial
         Products               --         (248)          --        248(3)
        Other                   94           90         (186)       190(4)
      Changes in assets
       and liabilities:
        Receivables - trade
         and other            (762)         (53)           7       (716)(4,5)
        Inventories           (755)        (755)          --         --
        Accounts payable and
         accrued expenses      356          271           72         13(4)
        Other assets - net      23            9           (5)        19(4)
        Other liabilities
         - net                 277          273           31        (27)(4)
    Net cash provided by
     (used for) operating
     activities              1,921        1,943          499       (521)
    Cash flow from investing
     activities:
      Capital expenditures -
       excluding equipment
       leased to others       (552)        (536)         (27)        11(4)
      Expenditures for
       equipment leased to
       others                 (532)          --         (548)        16(4)
      Proceeds from disposals
       of property, plant and
       equipment               319           20          310        (11)(4)
      Additions to finance
       receivables          (5,114)          --      (18,013)    12,899(5)
      Collections of
       finance receivables   4,079           --       15,969    (11,890)(5)
      Proceeds from the
       sale of finance
       receivables             980           --        1,484       (504)(5)
      Net intercompany
       borrowings               --           36         (383)       347(6)
      Investments and
       acquisitions (net
       of cash acquired)      (419)        (419)          --         --
      Proceeds from sale of
       available-for-sale
       securities              219           13          206         --
      Investments in
       available-for-sale
       securities             (296)         (30)        (266)        --
      Other - net              167           13          166        (12)(7)
    Net cash provided by
     (used for) investing
     activities             (1,149)        (903)      (1,102)       856
    Cash flow from
     financing activities:
      Dividends paid          (335)        (335)          --         --
      Common stock issued,
       including treasury
       shares reissued         349          349          (12)        12(7)
      Treasury shares
       purchased            (2,411)      (2,411)          --         --
      Excess tax benefit
       from stock-based
       compensation            147          147           --         --
      Net intercompany
       borrowings               --          383          (36)      (347)(6)
      Proceeds from debt
       issued (original
       maturities greater
       than three months)    5,033          102        4,931         --
      Payments on debt
       (original maturities
       greater than three
       months)              (5,595)        (501)      (5,094)        --
      Short-term borrowings
       (original maturities
       three months or
       less)--net            1,564          721          843         --
    Net cash provided by
     (used for) financing

     activities             (1,248)      (1,545)         632       (335)
    Effect of exchange rate
     changes on cash            16            9            7         --
    Increase (decrease) in
     cash and short-term
     investments              (460)        (496)          36         --
    Cash and short-term
     investments at
     beginning of period     1,108          951          157         --
    Cash and short-term
     investments at end
     of period                $648         $455         $193        $--

Certain amounts have been reclassified to conform to the current period financial statement presentation.

    (1) Represents Caterpillar Inc. and its subsidiaries with Financial
        Products accounted for on the equity basis.

    (2) Elimination of Financial Products' profit after tax due to equity
        method of accounting.

    (3) Non-cash adjustment for the undistributed earnings from Financial
        Products.

    (4) Elimination of non-cash adjustments and changes in assets and
        liabilities related to consolidated reporting.

    (5) Reclassification of Cat Financial's cash flow activity from investing
        to operating for receivables that arose from the sale of inventory.

    (6) Net proceeds and payments to/from Machinery and Engines and Financial
        Products.

    (7) Change in investment and common stock related to Financial Products.

Source: Caterpillar Inc.

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