CATERPILLAR COMPLETES ACQUISITION OF SHANDONG SEM MACHINERY CO.

(Full text of a statement. Contact details below.)

Caterpillar Completes Acquisition of Shandong SEM Machinery Co., Ltd.

QINGZHOU CITY, Feb 1 /PRNewswire-AsiaNet/ --

Caterpillar will continue investing in employee development, product improvements and customer support programs at SEM

Caterpillar Inc. (NYSE: CAT) has received final regulatory approval and completed the purchase of the remaining shares of Shandong SEM Machinery (SEM), a leading wheel loader manufacturer in China. Caterpillar purchased a minority stake in SEM in 2005 as part of its commitment to support its growing customer base in the Chinese construction equipment industry.

"Teamwork is one of Caterpillar's core values, and since our initial investment in SEM, we have collaborated with SEM management and with the Shandong and Qingzhou City governments to make improvements in every aspect of the SEM business," said Rich Lavin, Caterpillar group president with responsibility for Caterpillar's business in Asia Pacific. "Caterpillar has worked together with SEM managers and employees to improve workplace safety, employee training, operational excellence, product quality and the product technology of SEM."

In addition to SEM wheel loaders, Caterpillar core products manufactured in China include hydraulic excavators, track-type tractors, motor graders, paving products, large diesel engines used primarily for marine and power generation applications and generator sets for use in China and the Asia Pacific region. Caterpillar also manufactures components at several facilities in China.