The following press release was issued by Caterpillar on July 17, 2003. The furnishing of these materials is not intended to constitute a representation that such furnishing is required by Regulation FD or that the materials include material investor information that is not otherwise publicly available. In addition, the Registrant does not assume any obligation to update such information in the future.

Caterpillar Inc. (NSYE: CAT) announced today it will redeem all its $250,000,000 issue of 6% Debentures, (CUSIP No. 149123AP6) due May 1, 2007. The debentures will be redeemed on August 16, 2003, the redemption date, at 100% par value, plus accrued interest. This redemption allows Caterpillar to retire high-interest outstanding debt using either available cash or low-interest commercial paper, or both.

Payment of the redemption price will be made at the offices of Citibank, N.A., the Trustee for the debentures, upon surrender of the debentures by mail or by hand to Citibank, N.A., Agency and Trust Services, 111 Wall Street, 15th Floor, New York, NY 10043.

For more than 75 years, Caterpillar Inc. has been building the world's infrastructure and, in partnership with its worldwide dealer network, is driving positive and sustainable change in every continent. With 2002 sales and revenues of $20.15 billion, Caterpillar is a technology leader and the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. More information is available at http://www.cat.com.