“”Clarification to workforce reduction number

Today’s Fourth Quarter/Year End news release talks about actions that have been initiated to reduce the Caterpillar workforce by 20,000. The following information should clarify that figure and further actions the company will be taking.

The 20,000 figure includes actions that have already been taken and others that are expected in 2009. This number includes Caterpillar employees and contract, agency and part-time employees. (A more detailed breakout is below.)

Voluntary and involuntary separations and layoffs of about 4,000 full-time production employees. Depending on business conditions more layoffs may be required as the year unfolds. (This is a global figure and these actions have already occurred.)

Elimination of almost 8,000 temporary, contract and agency workers. While these workers are a key element of our “flexible workforce” they are not included among the 112,887 full-time employees at year-end. (This is a global figure and these actions have already occurred.)

Voluntary separations of about 2,500 support and management employees. (This figure represents the U.S.-based voluntary separation program announced in December.)

Additional layoffs or separations of as many as 5,000 support and management employees. (This figure is global and these actions are expected to occur in the first quarter.)

Several facilities have, or will have, shortened workweeks in 2009, and thousands of employees have been, or will be, affected by temporary layoffs and full and partial plant shutdowns. (These actions are global and some of these actions have occurred while others are anticipated.)”"