PEORIA, Ill., Jan. 26 /PRNewswire-FirstCall/ -- Caterpillar Financial Services Corporation (Cat Financial) today reported record revenues of $2.35 billion for 2005, an increase of $430 million, or 22 percent, compared with 2004. Profit after tax was a record $364 million, a $77 million, or 27 percent, increase over 2004. Of the increase in revenues, $258 million resulted from the impact of continued growth of finance receivables and operating leases (earning assets), $156 million from the impact of higher interest rates on new and existing finance receivables and $16 million from associated fees and various other revenue items. On a pre-tax basis, profit was up $113 million, or 27 percent, compared with 2004, principally due to an increase of $129 million in margin (wholesale, retail finance, operating lease and associated fee revenues less interest expense and depreciation on assets leased to others), primarily from a $3,431 million increase in average earning assets over 2004. In addition, there was an increase of $10 million from various other revenue items and $13 million from a decrease in the provision for credit losses due to improved portfolio health. These increases were partially offset by $33 million in higher operating expenses, primarily related to the growth in earning assets. New retail financing was a record $11.66 billion, an increase of $1,712 million, or 17 percent, from 2004. The increase was the result of increased financing in all segments. Past dues over 30 days at the end of 2005 were 1.42 percent compared to 1.55 percent at the end of 2004. Write-offs, net of recoveries, were $45 million during 2005 compared with $72 million for 2004. Caterpillar Vice President and Cat Financial President Kent M. Adams said, "2005 was a record year for Cat Financial. New business increased to record levels due to strong growth in Cat equipment sales; portfolio quality improved significantly as past dues fell to very low levels; and profit rose to a record amount despite a rising interest rate environment. These results would not have been possible without our employees' commitment to provide outstanding service to our customers." For 25 years, Cat Financial, a wholly-owned subsidiary of Caterpillar Inc., has been providing a wide range of financing alternatives for Caterpillar machinery and engines, Solar (R) gas turbines and other equipment and marine vessels. The company also extends loans to customers and dealers. Cat Financial has offices and subsidiaries located throughout the Americas, Asia, Australia, and Europe with headquarters in Nashville, Tennessee. STATISTICAL HIGHLIGHTS: FOURTH QUARTER 2005 VS. FOURTH QUARTER 2004 (ENDING DECEMBER 31) (Millions of dollars) 2005 2004 CHANGE Revenues $628 $524 20% Net Profit $104 $ 70 49% New Retail Financing $3,201 $2,999 7% Total Assets $25,899 $23,572 10% FULL YEAR 2005 VS. FULL YEAR 2004 (ENDING DECEMBER 31) (Millions of dollars) 2005 2004 CHANGE Revenues $2,354 $1,924 22% Net Profit $364 $287 27% New Retail Financing $11,660 $9,948 17% About Caterpillar Inc. For 80 years, Caterpillar Inc. has been building the world's infrastructure and, in partnership with its worldwide dealer network, is driving positive and sustainable change on every continent. With 2004 sales and revenues of $30.25 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/ . SAFE HARBOR Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "will," or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of the company may differ materially from those described or implied in such forward looking statements based on a number of factors and uncertainties, including, but not limited to, changes in economic conditions, currency exchange rates or political stability; market acceptance of the company's products and services; significant changes in the competitive environment; changes in law, regulations and tax rates; and other general economic, business and financing conditions and factors described in more detail in the company's filings with the Securities and Exchange Commission, including in its Annual Report on Form 10-K for the year ended December 31, 2004. We do not undertake to update our forward-looking statements. First Call Analyst: FCMN Contact: DATASOURCE: Caterpillar Financial Services Corporation CONTACT: Rusty L. Dunn, Corporate Public Affairs, of Caterpillar, +1-309-675-4803, Web site: http://www.cat.com/

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