Progress Rail Announces Grand Opening of Muncie, Indiana Locomotive Assembly Operation

ALBERTVILLE, Ala., Oct. 28, 2011 /PRNewswire/ — Almost one year to the date of
announcing its decision to locate a locomotive manufacturing facility in Muncie,
Indiana, Progress Rail Services Corporation (PRSC), a wholly-owned subsidiary of
Caterpillar Inc. (NYSE: CAT), officially opened its Muncie operation.

Progress Rail announced the site selection in October of 2010 and began work in
earnest in January of this year. In less than 10 months, the facility has
produced completed diesel-electric locomotives for our customers. The Muncie
facility is the first locomotive assembly plant to open in the United States in
many years, and is the latest milestone to mark Progress Rail’s strategic
approach to compete and win in the global railway industry.

“This is the type of responsiveness our customers have come to expect from
Progress Rail ,” said Billy Ainsworth, president and CEO of Progress Rail.
“Through its Progress Rail subsidiary, Caterpillar has proven its commitment to
the rail and transit industries and since 2006 has invested more than $2 billion
to meet our customers’ growing needs.”

Caterpillar and its subsidiaries are recognized as the global leaders in diesel
engine technology, which allows Progress Rail and EMD to offer the broadest
range of locomotive engine solutions and remain the only manufacturer of 2- and
4-cycle locomotive engines. The companies are also working on numerous
alternative fuel projects for customers. In December of 2008, Progress Rail
utilized the first common rail fuel system for mainline locomotives, with its
4,300-horsepower PR43C locomotive, powered by two rugged Cat® engines – the
C-175 and C-18.

In 2010 alone, Caterpillar and its subsidiaries invested a record $1.9 billion
in product research and development. Through these collective research and
development efforts, Progress Rail and EMD are able to produce the most durable,
reliable and sustainable locomotives in the world.

Within the past year, Progress Rail also announced two additional locomotive
assembly plants, as a further commitment to increasing capacity to produce
locomotives globally, with one in Sete Lagoas, Minas Gerais, Brazil, and another
in Sahagun, Mexico.

“We are proud to be in Muncie, Indiana, today celebrating the official opening
of our locomotive assembly plant. We look forward to being a part of this
community’s economic future for many years to come,” Ainsworth said. “We have
assembled a talented and dedicated group of local employees eager to meet our
customers’ needs. As we continue to grow our business and build additional
manufacturing capacity, Progress Rail will be well-equipped to produce and
support the largest global population of locomotives.”

Since acquiring EMD last year, Caterpillar and Progress Rail have made
significant investments in new equipment and plant improvements, to enable EMD
to create new products and services for the international railway industry.

“We want to thank our employees, our customers, the Muncie community and the
State of Indiana for their support,” said Dan Hanback, senior vice president of
operations. “This is about meeting the challenging competitive realities in the
global rail industry, but one that carries great potential. We’re proud to say
that Muncie is going to help us do that.”

About Progress Rail:

Progress Rail Services, a wholly owned subsidiary of Caterpillar Inc., is a
leading supplier of remanufactured locomotive and railcar products and services
to the railroad industry, operating one of the most extensive rail service and
supply networks in North America. We serve our customers through a network of
more than 140 locations across the United States, Canada, Mexico, Brazil, Italy,
Germany, and the United Kingdom, with more than 4,700 employees. Progress Rail
Services is headquartered in Albertville, Alabama.

Through its acquisition of Electro-Motive Diesel, Progress Rail has expanded its
network of global locations, furthering its commitment to providing
industry-leading products and services. Founded in 1922, Electro-Motive Diesel
is an original equipment manufacturer of diesel-electric locomotives.
Headquartered in LaGrange, Illinois, EMD designs, manufactures and sells
diesel-electric locomotives for all commercial railroad applications and is a
global provider of diesel engines for marine propulsion, offshore and land-based
oil well drilling rigs, and stationary power generation. The company is the only
diesel-electric locomotive manufacturer to have produced more than 72,500
engines and has the largest installed base in both North America and worldwide.
EMD also has an extensive aftermarket business offering replacement parts,
maintenance solutions and a range of value-added services.

For more information, visit www.progressrail.com, or www.emdiesels.com.

About Caterpillar:

For more than 85 years, Caterpillar Inc. has been making sustainable progress
possible and driving positive change on every continent. With 2010 sales and
revenues of $42.588 billion, Caterpillar is the world’s leading manufacturer of
construction and mining equipment, diesel and natural gas engines, industrial
gas turbines and diesel-electric locomotives. 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: http://www.caterpillar.com.

Forward-Looking Statements

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It is important to note that Caterpillar’s actual results may differ materially
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number of factors, including, but not limited to: (i) global economic conditions
and economic conditions in the industries and markets Caterpillar serves; (ii)
government monetary or fiscal policies and government spending on
infrastructure; (iii) commodity or component price increases and/or limited
availability of raw materials and component products, including steel; (iv)
Caterpillar’s and its customers’, dealers’ and suppliers’ ability to access and
manage liquidity; (v) political and economic risks associated with our global
operations, including changes in laws, regulations or government policies,
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and political and economic instability or civil unrest in the countries in which
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including the acquisition of Bucyrus International, Inc.; (ix) international
trade and investment policies, such as import quotas, capital controls or
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compliant machines and engines is not successful; (xi) market acceptance of
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environment, which may include decreased market share, lack of acceptance of
price increases, and/or negative changes to our geographic and product mix of
sales; (xiii) union disputes or other employee relations issues; (xiv)
Caterpillar’s ability to successfully implement the Caterpillar Production
System or other productivity initiatives; (xv) adverse changes in sourcing
practices of our dealers or original equipment manufacturers; (xvi) compliance
costs associated with environmental laws and regulations; (xvii) alleged or
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additional tax expense or exposure; (xix) currency fluctuations, particularly
increases and decreases in the U.S. dollar against other currencies; (xx)
failure of Caterpillar or Cat Financial to comply with financial covenants in
their respective credit facilities; (xxi) increased funding obligations under
our pension plans; (xxii) significant legal proceedings, claims, lawsuits or
investigations; (xxiii) imposition of operational restrictions or compliance
requirements if carbon emissions legislation and/or regulations are adopted;
(xxiv) changes in accounting standards or adoption of new accounting standards;
(xxv) adverse effects of natural disasters; and (xxvi) other factors described
in more detail under “Item 1A. Risk Factors” in Part I of our Form 10-K filed
with the SEC on February 22, 2011 for the year ended December 31, 2010. This
filing is available on our website at www.caterpillar.com/secfilings.