Upon completion of the deal, which is expected by the end of the year,
EMD will become a wholly-owned subsidiary of Progress Rail. EMD will
continue to be based in La Grange, Illinois, and Mr John Hamilton will
remain in his position as president and CEO.

"This acquisition represents the latest step in our strategic plan to
aggressively grow our presence in the global rail industry," said
Caterpillar vice chairman and CEO-elect Mr Doug Oberhelman. "Including
today's announcement and our acquisition of Progress Rail, Caterpillar
has invested about $US 2 billion since 2006 to grow our profitable rail
and transit businesses. We see a positive long-term future for the
continued growth of the rail industry."

EMD traces its roots back to 1922 and, becoming part of General Motors
in 1930. It was sold to Berkshire and Greenbriar in 2005. In addition
to its core North American market, EMD has exported diesel locomotives
to more than 70 countries around the world, and has established
production sites in India and China, where it works with local