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| UNITED      STATESSECURITIES      AND EXCHANGE COMMISSIONWashington,      D.C.  20549             |
|------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  |
| FORM      10-K                                                                                              |
| (Mark      One)                                                                                                  |   |   |
|                                                                                                             | [X] |   | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934For      the fiscal year ended December 31, 2008  |
|                                                                                                             |
|                                                                                                             |
| OR                                                                                                          |
|                                                                                                             | [  ] |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934For      the transition period from __________ to __________.  |
| Commission      File No. 0-13295                                                                            |
| CATERPILLAR      FINANCIAL SERVICES CORPORATION(Exact      name of Registrant as specified in its charter)  |
| Delaware(State      or other jurisdiction of incorporation or organization)                                 | 37-1105865(IRS      Employer I.D. No.)   |
| 2120      West End Ave., Nashville, Tennessee(Address      of principal executive offices)                  | 37203-0001(Zip      Code)  |
| Registrant's      telephone number, including area code:  (615)      341-1000                          |

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| Securities      registered pursuant to Section 12(b) of the Act:                      |                                                               |
|---------------------------------------------------------------------------------------|--------------------------------------------------------------------|
|                                                                                  |  Title of each class                                          |   |   | Name      of each exchange on which      registered   |   |
|                                                                                  |  5.125%      Medium Term Notes Series Fdue      October, 2011 |   |   |  New      York Stock Exchange |   |
|                                                                                  |                                                               |
| Securities      registered pursuant to Section 12(g) of the      Act:  None |                                                               |

|   |   |
|--------|--------|
|   |   |

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| TABLE OF CONTENTS |
|-------------------|
|              |   |   | Page |
| Part I            | Item 1. | Business | 1 |
|              | Item 1A. | Risk      Factors | 3 |
|              | Item 1B. | Unresolved      Staff Comments | 7 |
|              | Item 2. | Properties | 7 |
|              | Item 3. | Legal      Proceedings | 7 |
| Part II           | Item 5. | Market      for Registrant's Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities | 7 |
|              | Item 7. | Management's      Discussion and Analysis of Financial Condition      and Results of Operations | 8 |
|              | Item 7A. | Quantitative      and Qualitative Disclosures About Market Risk | 22 |
|              | Item 8. | Financial      Statements and Supplementary Data | 23 |
|              | Item 9. | Changes      in and Disagreements With Accountants on Accounting and Financial      Disclosure | 24 |
|              | Item 9A. | Controls      and Procedures | 24 |
|              | Item 9B. | Other      Information | 24 |
| Part III          | Item 14. | Principal      Accountant Fees and Services | 25 |
| Part IV           | Item 15. | Exhibits      and Financial Statement Schedules | 26 |

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|  PART      I |
|-------------------|

|  Item  1.  Business. |
|-------------------------------------|

| ·   | Tax      leases that are classified as either operating or finance leases for      financial accounting purposes, depending on the characteristics of the      lease.  For tax purposes, we are considered the owner of the      equipment (17 percent*). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Finance      (non-tax) leases, where the lessee for tax purposes is considered to be      the owner of the equipment during the term of the lease, that either      require or allow the customer to purchase the equipment for a fixed price      at the end of the term (21percent*). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Installment      sale contracts, which are equipment loans that enable customers to      purchase equipment with a down payment or trade-in and structure payments      over time (21 percent*). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Governmental      lease-purchase plans in the U.S. that offer low interest rates and      flexible terms to qualified non-federal government agencies (1      percent*). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Inventory/rental      programs, which provide assistance to dealers by financing their new      Caterpillar inventory and rental fleets (5  percent*). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Short-term      dealer receivables we purchase from Caterpillar at a discount (8      percent*). |
|--------------------|--------------------------------------------------------------------------------------------------|

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| ·   | Loans      that allow customers and dealers to use their Caterpillar equipment as      collateral to obtain financing. |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

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|  Item 1A.  Risk  Factors. |
|------------------------------------------|

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| ·   | Market      developments that may affect customer confidence levels and may cause      declines in credit applications and adverse changes in payment patterns,      causing increases in delinquencies and default rates, which could impact      our write-offs and provision for creditlosses. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      process we use to estimate losses inherent in our credit exposure requires      a high degree of management’s judgment regarding numerous subjective      qualitative factors, including forecasts of economic conditions and how      economic      predictors might impair the ability of our borrowers to repay their      loans.  Ongoing financial market disruption and volatility may      impact the accuracy of thesejudgments. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Our      ability to engage in routine funding transactions or borrow from other      financial institutions on acceptable terms or at all could be adversely      affected by further disruptions in the capital markets or other events,      including actions by rating agencies and deteriorating investor      expectations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Since      our counterparties are primarily financial institutions, their ability to      perform in accordance with any of our underlying agreements could be      adversely affected by market volatility and/or disruptions in the equity      and credit markets. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  Item 1B.  Unresolved Staff      Comments. |
|-----------------------------------------------------------|

|  Item  2.  Properties. |
|---------------------------------------|

|  Item 3.  Legal  Proceedings. |
|----------------------------------------------|

|  PART      II |
|--------------------|

|  Item 5.  Market for Registrant's Common Equity,      Related Stockholder Matters and                     Issuer Purchases of Equity      Securities. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  Item 7.  Management's Discussion and Analysis of      Financial Condition and Results of  Operations. |
|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Of      the increase in revenues for the year, $346 million resulted from the      impact of continued growth of earning assets (finance receivables and      operating leases at constant interest rates).  This increase was      partially offset by a $240 million decrease from the impact of lower      interest rates on new and existing finance receivables and a $105 million      net decrease in various other net revenueitems. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On      a pre-tax basis, profit was down $223 million for the year, or 31 percent,      compared with 2007.  The decrease was principally due to a $105      million impact from decreased net yield on average earning assets and a      higher provision expense of $95 million primarily related to deteriorating      global economic conditions.  In addition, interest rate      volatility, primarily in the fourth quarter, resulted in a $50 million      impact from mark-to-market adjustments on interest rate derivative      contracts.  The remaining decrease was due to a $36 million      increase in General, operating and administrative expense, a $28 million      net decrease in various other net revenue items and a $27 million      write-down on retained interests related to the securitized asset      portfolio due to worse than expected losses.  These decreases in      pre-tax profit were partially offset by a $130 million favorable impact      from higher average earning assets. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provision      for income taxes for the year decreased $114 million, or 49 percent,      compared with 2007.  The decrease was primarily attributable to      lower pre-tax results. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | New      retail financing for the year was a record $15.88 billion, an increase of      $1.80 billion, or 13 percent, from 2007.  The increase was the      result of increased new retail financing, primarily in our Asia-Pacific      and Diversified Services operatingsegments. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Past      dues over 30 days at December 31, 2008, were 3.88 percent compared to 2.36      percent at December 31, 2007.  This increase began with the      downturn in the U.S. economy and has spread to other      countries.  Write-offs, net of recoveries, for the year ended      December 31, 2008, were $121 million (0.48 percent of average retail      portfolio) compared to $68 million (0.31 percent of average retail      portfolio) for the year ended December 31, 2007.  The increase      in write-offs is primarily attributable to North America.  The      rate of write-offs in 2008 as a percentage of average retail portfolio      compares favorably to the most recent period of economic weakness in      2001/2002. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      allowance for credit losses totaled $395 million at December 31, 2008,      which is 1.44 percent of net finance receivables at December 31, 2008,      compared with 1.39 percent at December 31,2007. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (Millions      of dollars)                                                                 |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Finance      receivable and operating lease fees (including late    charges)                    |   | $      | 68     |   |   | $      | 64 |   |
| Currency      exchange gain/(loss)                                                              |   |   | (38    | )      |   |   | 105 |   |
| Net      gain/(loss) on undesignated foreign exchange contracts (including forward      points) |   |   | 33     |   |   |   | (89 | ) |
| Gain      on sales of receivables and securities*                                               |   |   | 30     |   |   |   | 19 |   |
| Miscellaneous      other revenues, net                                                          |   |   | 15     |   |   |   | 12 |   |
| Service      fee income on sold receivables                                                     |   |   | 13     |   |   |   | 13 |   |
| Net      gain on returned or repossessed equipment                                              |   |   | 8      |   |   |   | 22 |   |
| Partnership/dividend      income                                                                |   |   | 3      |   |   |   | 7 |   |
| Income/(loss)      related to retained interests in securitized retail      receivables         |   |   | (20    | )      |   |   | 10 |   |
| Net      gain/(loss) from interest rate derivatives                                             |   |   | (44    | )      |   |   | 6 |   |
| Total      Other revenues                                                                       |   | $      | 68     |   |   | $      | 169 |   |
|                                                                                            |   |   |   |   |   |   |   |   |

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|                                            |   | Three      Months Ended |     |
|-------------------------------------------------|--------|-------------------------|----------|
|                                            |   | December      31,       |     |
|                                            |   | 2008                    |     |   | 2007 |   |
| Revenues:                                       |   |                    |     |   |   |   |
| Retail      finance                             |   | $                       | 412      |   |   | $ | 400 |   |
| Operating      lease                            |   |                    | 227      |   |   |   | 229 |   |
| Wholesale      finance                          |   |                    | 77       |   |   |   | 110 |   |
| Other                                           |   |                    | (55      | ) |   |   | 41 |   |
| Total      revenues                             |   |                    | 661      |   |   |   | 780 |   |
|                                            |   |                    |     |   |   |   |   |   |
| Expenses:                                       |   |                    |     |   |   |   |   |   |
| Interest                                        |   |                    | 304      |   |   |   | 294 |   |
| Depreciation      on equipment leased to others |   |                    | 177      |   |   |   | 178 |   |
| General,      operating and administrative      |   |                    | 97       |   |   |   | 92 |   |
| Provision      for credit losses                |   |                    | 80       |   |   |   | 38 |   |
| Other                                           |   |                    |  13 |   |   |   |  6 |   |
| Total      expenses                             |   |                    | 671      |   |   |   | 608 |   |
|                                            |   |                    |     |   |   |   |   |   |
| Profit      before income taxes                 |   |                    | (10      | ) |   |   | 172 |   |
|                                            |   |                    |     |   |   |   |   |   |
| Provision      for income taxes                 |   |                    | (23      | ) |   |   |  59 |   |
| Profit                                          |   | $                       | 13       |   |   | $ | 113 |   |
|                                            |   |                    |     |   |   |   |   |   |

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|  (Millions      of dollars)                                                    |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Finance      receivable and operating lease fees (including late    charges)             |   | $      | 16     |   |   | $      | 16 |   |
| Miscellaneous      other revenues, net                                                   |   |   | 9      |   |   |   | 1 |   |
| Gain      on sales of receivables and securities*                                        |   |   | 8      |   |   |   | 5 |   |
| Service      fee income on sold receivables                                              |   |   | 3      |   |   |   | 4 |   |
| Partnership/dividend      income                                                         |   |   | -      |   |   |   | 2 |   |
| Net      gain/(loss) on returned or repossessed equipment                                |   |   | (7     | )      |   |   | 4 |   |
| Net      loss on undesignated foreign exchange contracts (including forward      points) |   |   | (12    | )      |   |   | (36 | ) |
| Currency      exchange gain/(loss)                                                       |   |   | (16    | )      |   |   | 39 |   |
| Income/(loss)      related to retained interests in securitized retail      receivables  |   |   | (13    | )      |   |   | 2 |   |
| Net      gain/(loss) from interest rate derivatives                                      |   |   | (43    | )      |   |   | 4 |   |
| Total      Other revenues/(loss)                                                         |   | $      | (55    | )      |   | $      | 41 |   |
|                                                                                     |   |   |   |   |   |   |   |   |

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| (Millions of      dollars)                                       |   |      2008   |   |   |     2007 |   |
|-----------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|-------------------------|--------|
| Securitized      Retail Installment Sale Contracts and Finance Leases |   |                                           |   |   |                    |   |
| Installment      sale contracts securitized                           |   | $                                              | 877    |   |                    | $      | 1,105 |   |
| Finance      leases securitized                                       |   |                                           | 32     |   |                    |   | 54 |   |
| Less:      Retained interests (included in Other assets)              |   |                                           | (52    | )      |                    |   | (49 | ) |
| Off-balance      sheet securitized retail receivables                 |   |                                           | 857    |   |                    |   | 1,110 |   |
|                                                                  |   |                                           |   |   |                    |   |   |   |
| Sales      of Interests in Wholesale Receivables                      |   |                                           |   |   |                    |   |   |   |
| Wholesale      receivables                                            |   |                                           | 240    |   |                    |   | 240 |   |
|                                                                  |   |                                           |   |   |                    |   |   |   |
| Other      Managed Assets                                             |   |                                           |   |   |                    |   |   |   |
| Retail      installment sale contracts                                |   |                                           | 283    |   |                    |   | 122 |   |
| Retail      finance leases                                            |   |                                           | 198    |   |                    |   | 155 |   |
| Operating      leases                                                 |   |                                           | 122    |   |                    |   | 128 |   |
| Retail      notes receivable                                          |   |                                           | 30     |   |                    |   | 36 |   |
| Other      managed receivables/leases                                 |   |                                           | 633    |   |                    |   | 441 |   |
|                                                                  |   |                                           |   |   |                    |   |   |   |
| Total      off-balance sheet managed assets                           |   | $                                              | 1,730  |   |                    | $      | 1,791 |   |
|                                                                  |   |                                           |   |   |                    |   |   |   |

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| (Millions      of dollars)                                                          |   | 2007   |   |   | 2006   |   |
|------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Currency      exchange gain                                                              |   | $      | 105    |   |   | $      | 31 |   |
| Net      loss on undesignated foreign exchange contracts (including forward      points) |   |   | (89    | )      |   |   | (20 | ) |
| Finance      receivable and operating lease fees (including late    charges)             |   |   | 64     |   |   |   | 63 |   |
| Net      gain on returned or repossessed equipment                                       |   |   | 22     |   |   |   | 14 |   |
| Gain      on sales of receivables and securities*                                        |   |   | 19     |   |   |   | 21 |   |
| Service      fee income on sold receivables                                              |   |   | 13     |   |   |   | 14 |   |
| Miscellaneous      other revenues, net                                                   |   |   | 12     |   |   |   | 13 |   |
| Income      related to retained interests in securitized retail      receivables         |   |   | 10     |   |   |   | 17 |   |
| Partnership/dividend      income                                                         |   |   | 7      |   |   |   | 4 |   |
| Net      gain/(loss) from interest rate derivatives                                      |   |   | 6      |   |   |   | (6 | ) |
| Total      Other revenues                                                                |   | $      | 169    |   |   | $      | 151 |   |
|                                                                                     |   |   |   |   |   |   |   |   |

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| (Millions of      dollars)                                       |   |      2007 |   |   |     2006 |   |
|-----------------------------------------------------------------------|--------|------------------------------------|--------|--------|-------------------------|--------|
| Securitized      Retail Installment Sale Contracts and Finance Leases |   |                               |   |   |                    |   |
| Installment      sale contracts securitized                           |   | $                                  | 1,105  |   |                    | $      | 1,174 |   |
| Finance      leases securitized                                       |   |                               | 54     |   |                    |   | 53 |   |
| Less:      Retained interests (included in Other assets)              |   |                               | (49    | )      |                    |   | (68 | ) |
| Off-balance      sheet securitized retail receivables                 |   |                               | 1,110  |   |                    |   | 1,159 |   |
|                                                                  |   |                               |   |   |                    |   |   |   |
| Sales      of Interests in Wholesale Receivables                      |   |                               |   |   |                    |   |   |   |
| Wholesale      receivables                                            |   |                               | 240    |   |                    |   | 240 |   |
|                                                                  |   |                               |   |   |                    |   |   |   |
| Other      Managed Assets                                             |   |                               |   |   |                    |   |   |   |
| Retail      finance leases                                            |   |                               | 155    |   |                    |   | 90 |   |
| Retail      installment sale contracts                                |   |                               | 122    |   |                    |   | 111 |   |
| Operating      leases                                                 |   |                               | 128    |   |                    |   | 119 |   |
| Retail      notes receivable                                          |   |                               | 36     |   |                    |   | 42 |   |
| Other      managed receivables/leases                                 |   |                               | 441    |   |                    |   | 362 |   |
|                                                                  |   |                               |   |   |                    |   |   |   |
| Total      off-balance sheet managed assets                           |   | $                                  | 1,791  |   |                    | $      | 1,761 |   |
|                                                                  |   |                               |   |   |                    |   |   |   |

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| (Millions      of dollars)                           |   |  2008 |   |   |  2007 |   |
|-----------------------------------------------------------|--------|------------|--------|--------|------------|--------|
| Medium-term      notes, net of unamortized discount       |   | $          | 19,647 |   |       | $      | 17,322 |   |
| Commercial      paper, net of unamortized discount        |   |       | 5,717  |   |       |   | 4,935 |   |
| Bank      borrowings – short-term                   |   |       | 817    |   |       |   | 550 |   |
| Bank      borrowings – long-term                    |   |       | 755    |   |       |   | 615 |   |
| Variable      denomination floating rate demand notes     |   |       | 543    |   |       |   | 699 |   |
| Notes      payable to Caterpillar                         |   |       | 435    |   |       |   | 275 |   |
| Deposit      obligation                                   |   |       | 232    |   |       |   | 232 |   |
| Loans      from a company-owned partnership               |   |       | -      |   |       |   | 8 |   |
|     Total      outstanding borrowings |   | $          | 28,146 |   |       | $      | 24,636 |   |
|                                                      |   |       |   |   |       |   |   |   |

| ·   | The      five-year facility of $1.62 billion expires in September    2012. |
|--------------------|----------------------------------------------------------------------------|

| ·   | The      five-year facility of $2.98 billion expires in September    2011. |
|--------------------|----------------------------------------------------------------------------|

| ·   | The      364-day facility was increased from $1.95 billion to $2.25 billion and      will expire in September 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

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| (Millions      of dollars)              |   | 2009   |      |   | 2010   |   |      | 2011   |   |   | 2012   |   |   | 2013   |   |   | After 2013 |   |   | Total  |   |
|-----------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
| Long-term      debt                     |   | $      | 5,036     |   |   | $      | 4,734     |   |   | $      | 2,326  |   |   | $      | 1,562  |   |       | $      | 1,800  |   |   | $ | 5,176 |   |   | $ | 20,634 |   |
| Operating      leases                   |   |   | 14        |   |   |   | 13        |   |   |   | 12     |   |   |   | 11     |   |       |   | 10     |   |   |   | 65 |   |   |   | 125 |   |
| Purchase obligations(1)            |   |   | 6         |   |   |   | -         |   |   |   | -      |   |   |   | -      |   |       |   | -      |   |   |   | - |   |   |   | 6 |   |
| Interest      payable on long-term debt |   |   |  745 |   |   |   |  514 |   |   |   | 415    |   |   |   | 355    |   |       |   | 303    |   |   |   | 1,320 |   |   |   | 3,652 |   |
| Total      contractual obligations      |   | $      | 5,801     |   |   | $      | 5,261     |   |   | $      | 2,753  |   |   | $      | 1,928  |   |       | $      | 2,113  |   |   | $ | 6,561 |   |   | $ | 24,417 |   |
|                                    |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |

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|  Item 7A.  Quantitative and Qualitative Disclosures      About Market Risk. |
|--------------------------------------------------------------------------------------------|

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|  Item 8.  Financial Statements and Supplementary      Data. |
|----------------------------------------------------------------------------|

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|  Item 9.  Changes in and Disagreements With      Accountants on Accounting and Financial    Disclosure. |
|------------------------------------------------------------------------------------------------------------------------|

|  Item 9A.  Controls and      Procedures. |
|---------------------------------------------------------|

|  Item 9B.  Other    Information. |
|-------------------------------------------------|

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|  PART      III |
|---------------------|

|  Item 14.  Principal Accountant Fees and      Services. |
|------------------------------------------------------------------------|

| (Millions      of dollars)  |   | 2008   |   |   | 2007   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|
| Audit      fees             |   | $      | 3.6    |   |   | $      | 3.6 |   |
| Audit-related      fees (1) |   |   | .7     |   |   |   | .4 |   |
| Tax      fees (2)           |   |   | .8     |   |   |   | .6 |   |
| All      other fees (3)     |   |   | -      |   |   |   | .1 |   |
|                        |   |   |   |   |   |   |   |   |
| Total                       |   | $      | 5.1    |   |   | $      | 4.7 |   |
|                        |   |   |   |   |   |   |   |   |

| (1)   | "Audit-related      fees" principally include agreed upon procedures for securitizations and      accounting consultations. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| (2)   | "Tax      fees" include, among other things, statutory tax return preparation and      review and advising on the impact of changes in local tax      laws. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | "All      other fees" principally include translation services and attendance at      training classes/seminars. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

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|  PART      IV |
|--------------------|

|  Item 15.  Exhibits and Financial Statement      Schedules. |
|----------------------------------------------------------------------------|

| (a)   | The      following documents are filed as part of this  report. |
|-----------------|-----------------------------------------------------------------|

| 1.   | Financial      Statements |
|----------------|---------------------------|

| ·   | Management’s      Report on Internal Control Over Financial  Reporting |
|--------------------|------------------------------------------------------------------------------|

| ·   | Report      of Independent Registered Public AccountingFirm |
|--------------------|-------------------------------------------------------------|

| (b)   | Exhibits |
|-----------------|----------|

| 3.1 | Certificate      of Incorporation of the Company, as amended (incorporated by reference      from Exhibit 3.1 to the Company’s Form 10 for the year ended December 31,      1984).                                                                                                                                                                                                                                      |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2 | Bylaws      of the Company, as amended (incorporated by reference from Exhibit 3.2 to      the Company’s Quarterly Report on Form 10-Q, for the quarter ended June      30, 2005).                                                                                                                                                                                                                                      |
| 4.1 | Indenture,      dated as of April 15, 1985, between the Company and Morgan Guaranty Trust      Company of New York, as Trustee (incorporated by reference from Exhibit      4.1 to the Company’s Registration Statement on Form S-3, Commission File      No. 33-2246).                                                                                                                                                 |
| 4.2 | First      Supplemental Indenture, dated as of May 22, 1986, amending the Indenture      dated as of April 15, 1985, between the Company and Morgan Guaranty Trust      Company of New York, as Trustee (incorporated by reference from Exhibit      4.1 to the Company’s Quarterly Report on Form 10-Q, for the quarter ended      June 20, 1986).                                                                     |
| 4.3 | Second      Supplemental Indenture, dated as of March 15, 1987, amending the Indenture      dated as of April 15, 1985, between the Company and Morgan Guaranty Trust      Company of New York, as Trustee (incorporated by reference from Exhibit      4.3 to the Company’s Current Report on Form 8-K, dated April 24,      1987).                                                                                    |
| 4.4 | Third      Supplemental Indenture, dated as of October 2, 1989, amending the      Indenture dated as of April 15, 1985, between the Company and Morgan      Guaranty Trust Company of New York, as Trustee (incorporated by reference      from Exhibit 4.3 to the Company’s Current Report on Form 8-K, dated      October 16, 1989).                                                                                  |
| 4.5 | Fourth      Supplemental Indenture, dated as of October 1, 1990, amending the      Indenture dated April 15, 1985, between the Company and Morgan Guaranty      Trust Company of New York, as Trustee (incorporated by reference from      Exhibit 4.3 to the Company’s Current Report on Form 8-K, dated October 29,      1990).                                                                                       |
| 4.6 | Indenture,      dated as of July 15, 1991, between the Company and Continental Bank,      National Association, as Trustee (incorporated by reference from Exhibit      4.1 to the Company’s Current Report on Form 8-K, dated July 25,      1991).                                                                                                                                                                     |
| 4.7 | First      Supplemental Indenture, dated as of October 1, 2005, amending the      Indenture dated as of July 15, 1991, between the Company and U.S. Bank      Trust National Association (as successor to the former      Trustee)(incorporated by reference from Exhibit 4.3 to Amendment No. 5 to      the Company’s Registration Statement on Form S-3 filed October 20, 2005,      Commission File No. 333-114075). |
| 4.8 | Support      Agreement, dated as of December 21, 1984, between the Company and      Caterpillar (incorporated by reference from Exhibit 10.2 to the Company’s      amended Form 10, for the year ended December 31, 1984).                                                                                                                                                                                              |
| 4.9 | First      Amendment to the Support Agreement dated June 14, 1995, between the      Company and Caterpillar (incorporated by reference from Exhibit 4 to the      Company’s Current Report on Form 8-K, dated June 14,  1995).                                                                                                                                                                                          |

----

| 10.1        | Tax      Sharing Agreement, dated as of June 21, 1984, between the Company and      Caterpillar (incorporated by reference from Exhibit 10.3 to the Company’s      amended Form 10, for the year ended December 31, 1984).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.2        | Five-Year      Credit Agreement, dated as of September 21, 2006 (2006 Five-Year Credit      Agreement), among the Company, Caterpillar, Caterpillar International      Finance plc, Caterpillar Finance Corporation, certain other financial      institutions named therein and Citibank, N.A., The Bank of      Tokyo-Mitsubishi UFJ, Ltd., Citibank International plc, ABN AMRO Bank      N.V., Bank of America, N.A., Barclays Bank PLC, J.P. Morgan Securities,      Inc., Société Générale and Citigroup Global Markets Inc. (incorporated by      reference from Exhibit 99.1 to the Company’s Current Report on Form 8-K,      filed September 27, 2006, Commission File No. 0-11241). |
| 10.3        | Japan      Local Currency Addendum to the 2006 Five-Year Credit Agreement among the      Company, Caterpillar, Caterpillar Finance Corporation, the Japan Local      Currency Banks named therein, Citibank, N.A. and The Bank of      Tokyo-Mitsubishi UFJ, Ltd. (incorporated by reference from Exhibit 99.2 to      the Company’s Current Report on Form 8-K, filed September 27,      2006).                                                                                                                                                                                                                                                                                                                   |
| 10.4        | Amendment      No. 1 to Japan Local Currency Addendum to the 2006 Five-Year Credit      Agreement among the Company, Caterpillar, Caterpillar Finance Corporation,      the Japan Local Currency Banks named therein, Citibank, N.A. and The Bank      of Tokyo-Mitsubishi UFJ, Ltd. (incorporated by reference from Exhibit 99.5      to the Company’s Current Report on Form 8-K, filed January 26,      2009).                                                                                                                                                                                                                                                                                                  |
| 10.5        | Local      Currency Addendum to the 2006 Five-Year Credit Agreement among the      Company, Caterpillar International Finance p.l.c., the Local Currency      Banks named therein, Citibank, N.A. and Citibank International plc      (incorporated by reference from Exhibit 99.2 to the Company’s Current      Report on Form 8-K, filed September 27, 2006).                                                                                                                                                                                                                                                                                                                                                    |
| 10.6        | Amendment      No. 1 to Local Currency Addendum to the 2006 Five-Year Credit Agreement      among the Company, Caterpillar International Finance p.l.c., the Local      Currency Banks named therein, Citibank, N.A. and Citibank International      plc (incorporated by reference from Exhibit 99.4 to the Company’s Current      Report on Form 8-K, filed January 26, 2009).                                                                                                                                                                                                                                                                                                                                   |
| 10.7        | Amendment      No. 1 to the 2006 Five-Year Credit Agreement among the Company,      Caterpillar, Caterpillar Finance Corporation and Caterpillar International      Finance p.l.c., the Banks, Japan Local Currency Banks and Local Currency      Banks named therein, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citibank      International plc and Citibank, N.A. (incorporated by reference from      Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q, filed October      31, 2008).                                                                                                                                                                                                                  |
| 10.8        | Omnibus      Amendment and Waiver Agreement (Amendment No. 2) to the 2006 Five-Year      Credit Agreement among the Company, Caterpillar, Caterpillar Finance      Corporation, Caterpillar International Finance p.l.c., the Banks and Local      Currency Banks named therein, Citibank International plc and Citibank,      N.A. (incorporated by reference from Exhibit 10.6 to the Company’s      Quarterly Report on Form 10-Q, filed October 31, 2008).                                                                                                                                                                                                                                                     |
| 10.9        | Amendment      No. 3 to the 2006 Five-Year Credit Agreement among the Company,      Caterpillar, Caterpillar Finance Corporation and Caterpillar International      Finance Limited (f/k/a Caterpillar International Finance p.l.c.), the      Banks, Japan Local Currency Banks and Local Currency Banks named therein,      The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citibank International plc and      Citibank, N.A. (incorporated by reference from Exhibit 99.4 to the      Company’s Current Report on Form 8-K, filed September 23,      2008).                                                                                                                                                            |
| 10.10       | Amendment      No. 4 to the 2006 Five-Year Credit Agreement among the Company,      Caterpillar, Caterpillar Finance Corporation and Caterpillar International      Finance Limited (f/k/a Caterpillar International Finance p.l.c.), the      Banks, Japan Local Currency Banks and Local Currency Banks named therein,      The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citibank International plc and      Citibank, N.A. (incorporated by reference from Exhibit 99.3 to the      Company’s Current Report on Form 8-K, filed January 26,    2009).                                                                                                                                                                |
| 10.11  | Five-Year      Credit Agreement, dated as of September 20, 2007 (2007 Five-Year Credit      Agreement), among the Company, Caterpillar, Caterpillar Finance      Corporation, certain financial institutions named therein, Citibank, N.A.,      The Bank of Tokyo-Mitsubishi UFJ Ltd., ABN AMRO Bank N.V., Bank of      America, N.A., Barclays Bank PLC, J.P. Morgan Securities, Inc., Société      Générale and Citigroup Global Markets Inc. (incorporated by reference from      Exhibit 99.1 to the Company’s Current Report on Form 8-K, filed September      26, 2007).                                                                                                                |
| 10.12       | Japan      Local Currency Addendum to the 2007 Five-Year Credit Agreement among the      Company, Caterpillar Finance Corporation, the Japan Local Currency Banks      named therein, Citibank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd.      (incorporated by reference from Exhibit 99.2 to the Company’s Current      Report on Form 8-K, filed September 26, 2007).                                                                                                                                                                                                                                                                                                                                     |
| 10.13       | Amendment      No. 1 to Japan Local Currency Addendum to the 2007 Five-Year Credit      Agreement among the Company, Caterpillar Finance Corporation, the Japan      Local Currency Banks named therein, Citibank, N.A. and The Bank of      Tokyo-Mitsubishi UFJ, Ltd. (incorporated by reference from Exhibit 99.6 to      the Company’s Current Report on Form 8-K, filed January 26,      2009).                                                                                                                                                                                                                                                                                                               |

----

| 10.14 | Amendment      No. 1 to the 2007 Five-Year Credit Agreement among the Company,      Caterpillar and Caterpillar Finance Corporation, the Banks and Japan Local      Currency Banks named therein, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and      Citibank, N.A. (incorporated by reference from Exhibit 99.3 to the      Company’s Current Report on Form 8-K, filed September 23,      2008).                                                                                                                                                                |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.15 | Amendment      No. 2 to the 2007 Five-Year Credit Agreement among the Company,      Caterpillar and Caterpillar Finance Corporation, the Banks and Japan Local      Currency Banks named therein, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and      Citibank, N.A. (incorporated by reference from Exhibit 99.2 to the      Company’s Current Report on Form 8-K, filed January 26,    2009).                                                                                                                                                                    |
| 10.16 | 364-Day      Credit Agreement dated September 18, 2008 (2008 364-Day Credit Agreement)      among the Company, Caterpillar, Caterpillar Finance Corporation, the Banks      named therein, Citibank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., ABN      AMRO Bank N.V., Bank of America, N.A., Barclays Bank PLC, J.P. Morgan      Securities, Inc., Société Générale and Citigroup Global Markets Inc.      (incorporated by reference from Exhibit 99.1 to the Company’s Current      Report on Form 8-K, filed September 23, 2008). |
| 10.17 | Amendment      No. 1 to the 2008 364-Day Credit Agreement among the Company, Caterpillar,      Caterpillar Finance Corporation, the Banks and Japan Local Currency Banks      named therein, The Bank of Tokyo Mitsubishi UFJ, Ltd. (as Japan local      currency agent and bank), and Citibank, N.A. (as agent) (incorporated by      reference from Exhibit 99.1 to the Company’s Current Report on Form 8-K,      filed January 26, 2009).                                                                                                                  |
| 10.18 | Japan      Local Currency Addendum to the 2008 364-Day Credit Agreement among the      Company, Caterpillar Finance Corporation, the Japan Local Currency Banks      named therein, Citibank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd.      (incorporated by reference from Exhibit 99.2 to the Company’s Current      Report on Form 8-K, filed September 23, 2008).                                                                                                                                                                                   |
| 10.19 | 364-Day      Credit Agreement dated July 15, 2008, among the Company, the financial      institutions named therein and Société Générale (incorporated by reference      from Exhibit 10.13 to the Company’s Quarterly Report on Form 10-Q, filed      October 31, 2008).                                                                                                                                                                                                                                                                  |
| 10.20 | Amendment      No. 1 to the 364-Day Credit Agreement dated July 15, 2008, among the      Company, the financial institutions named therein and Société Générale      (incorporated by reference from Exhibit 10.14 to the Company’s Quarterly      Report on Form 10-Q, filed October 31, 2008).                                                                                                                                                                                                                                           |
| 10.21 | Amendment      No. 2 to the 364-Day Credit Agreement dated July 15, 2008, among the      Company, the financial institutions named therein and Société Générale      (incorporated by reference from Exhibit 99.7 to the Company’s Current      Report on Form 8-K, filed January 26, 2009).                                                                                                                                                                                                                                               |
| 12    | Computation      of Ratio of Profit to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 23    | Consent      of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 31.1  | Certification      of Kent M. Adams, President, Director and Chief Executive Officer of      Caterpillar Financial Services Corporation, of Caterpillar Financial      Services Corporation, as required pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                             |
| 31.2  | Certification      of James A. Duensing, Executive Vice President and Chief Financial Officer      of Caterpillar Financial Services Corporation, as required pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                        |
| 32    | Certifications      of Kent M. Adams, President, Director and Chief Executive Officer of      Caterpillar Financial Services Corporation, and James A. Duensing,      Executive Vice President and Chief Financial Officer of Caterpillar      Financial Services Corporation, as required pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                           |

----

|   | Caterpillar      Financial Services Corporation |
|--------|-------------------------------------------------|
|   | (Registrant)                                    |

| Dated:  February      20, 2009 | By:    | /s/ Michael G.      Sposato        |
|------------------------------------------|--------|------------------------------------|
|                                     |   | Michael      G. Sposato, Secretary |

|    Date             |    Signature              |    Title                                 |
|------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  February      20, 2009                                                                   |  /s/ Kent M. AdamsKent      M. Adams                                                                 |   President,      Director and Chief Executive      Officer                                                                                                                                              |
|                                                                                           |                                                                                                      |                                                                                                                                                                                                                    |
|  February      20, 2009                                                                   |  /s/ Edward J. RappEdward      J. Rapp                                                               |  Director                                                                                                                                                                                                          |
|                                                                                           |                                                                                                      |                                                                                                                                                                                                                    |
|  February      20, 2009                                                                   |  /s/ James A. DuensingJames      A. Duensing                                                         |  Executive      Vice President and ChiefFinancial      Officer(Principal      Financial Officer)                                                                                                                   |
|                                                                                           |                                                                                                      |                                                                                                                                                                                                                    |
|  February      20, 2009                                                                   |  /s/ Steven R. ElsesserSteven      R. Elsesser                                                       |  Controller(Principal      Accounting Officer)                                                                                                                                                                     |
|                                                                                           |                                                                                                      |                                                                                                                                                                                                                    |

----

----

----

|                                            |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Revenues:                                       |   |   |   |   |   |   |   |   |   |
| Retail      finance                             |   | $      | 1,654  |   |   | $      | 1,535  |   |   | $ | 1,315 |   |
| Operating      lease                            |   |   | 931    |   |   |   | 864    |   |   |   | 806 |   |
| Wholesale      finance                          |   |   | 346    |   |   |   | 430    |   |   |   | 491 |   |
| Other                                           |   |   | 68     |   |   |   | 169    |   |   |   | 151 |   |
| Total      revenues                             |   |   | 2,999  |   |   |   | 2,998  |   |   |   | 2,763 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                        |   |   | 1,159  |   |   |   | 1,132  |   |   |   | 1,029 |   |
| Depreciation      on equipment leased to others |   |   | 724    |   |   |   | 671    |   |   |   | 631 |   |
| General,      operating, and administrative     |   |   | 391    |   |   |   | 355    |   |   |   | 337 |   |
| Provision      for credit losses                |   |   | 192    |   |   |   | 97     |   |   |   | 68 |   |
| Other                                           |   |   | 28     |   |   |   | 15     |   |   |   | 10 |   |
| Total      expenses                             |   |   | 2,494  |   |   |   | 2,270  |   |   |   | 2,075 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit      before income taxes                 |   |   | 505    |   |   |   | 728    |   |   |   | 688 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for income taxes (Note 12)       |   |   | 120    |   |   |   | 234    |   |   |   | 215 |   |
| Profit                                          |   | $      | 385    |   |   | $      | 494    |   |   | $ | 473 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                              |   | 2008   |        |   | 2007   |   |        | 2006   |   |
|-----------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
| Assets:                                                                           |   |   |        |   |   |   |        |   |   |
| Cash      and cash equivalents                                                    |   | $      | 1,080       |   |   | $      | 185         |   |   | $ | 136 |   |
| Finance      receivables (Notes 2 and 3)                                          |   |   |        |   |   |   |        |   |   |   |   |   |
| Retail      notes receivable                                                      |   |   | 8,209       |   |   |   | 5,887       |   |   |   | 5,021 |   |
| Wholesale      notes receivable                                                   |   |   | 3,483       |   |   |   | 3,570       |   |   |   | 5,098 |   |
| Notes      receivable from Caterpillar (Note 14)                                  |   |   | 81          |   |   |   | 74          |   |   |   | 75 |   |
| Finance      leases and installment sale contracts - Retail                       |   |   | 16,912      |   |   |   | 17,287      |   |   |   | 15,269 |   |
| Finance      leases and installment sale contracts - Wholesale                    |   |   | 610         |   |   |   | 649         |   |   |   | 420 |   |
|                                                                              |   |   | 29,295      |   |   |   | 27,467      |   |   |   | 25,883 |   |
| Less:      Unearned income                                                        |   |   | (1,817      | )      |   |   | (2,022      | )      |   |   | (1,874 | ) |
|              Less: Allowance for credit losses |   |   | (395        | )      |   |   | (353        | )      |   |   | (319 | ) |
| Total      net finance receivables                                                |   |   | 27,083      |   |   |   | 25,092      |   |   |   | 23,690 |   |
|                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |
| Equipment      on operating leases,                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| less      accumulated depreciation (Note 5)                                       |   |   | 3,028       |   |   |   | 2,989       |   |   |   | 2,562 |   |
| Deferred      and refundable income taxes (Note 12)                               |   |   | 127         |   |   |   | 69          |   |   |   | 40 |   |
| Other      assets                                                                 |   |   |  1,764 |   |   |   |  1,094 |   |   |   | 908 |   |
| Total      assets                                                                 |   | $      | 33,082      |   |   | $      | 29,429      |   |   | $ | 27,336 |   |
|                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |
| Liabilities      and stockholder’s equity:                                  |   |   |        |   |   |   |        |   |   |   |   |   |
| Payable      to dealers and others                                                |   | $      |  255   |   |   | $      |  310   |   |   | $ |  286 |   |
| Payable      to Caterpillar – other (Note 14)                               |   |   | 60          |   |   |   | 33          |   |   |   | 34 |   |
| Accrued      expenses                                                             |   |   | 476         |   |   |   | 263         |   |   |   | 257 |   |
| Income      taxes payable                                                         |   |   | 36          |   |   |   | 81          |   |   |   | 98 |   |
| Payable      to Caterpillar – borrowings (Note 14)                          |   |   | 435         |   |   |   | 275         |   |   |   | 87 |   |
| Short-term      borrowings (Note 8)                                               |   |   | 7,077       |   |   |   | 6,184       |   |   |   | 5,398 |   |
| Current      maturities of long-term debt (Note 9)                                |   |   | 5,036       |   |   |   | 4,947       |   |   |   | 4,038 |   |
| Long-term      debt (Note 9)                                                      |   |   | 15,598      |   |   |   | 13,230      |   |   |   | 13,521 |   |
| Deferred      income taxes and other liabilities (Note 12)                        |   |   |  598   |   |   |   |  435   |   |   |   |  379 |   |
| Total      liabilities                                                            |   |   | 29,571      |   |   |   | 25,758      |   |   |   | 24,098 |   |
|                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |
| Commitments      and contingent liabilities (Note 11)                             |   |   |        |   |   |   |        |   |   |   |   |   |
|                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |
| Common      stock - $1 par value                                                  |   |   |        |   |   |   |        |   |   |   |   |   |
| Authorized:  2,000      shares; Issued and                              |   |   |        |   |   |   |        |   |   |   |   |   |
| outstanding:  one      share (at paid-in amount)                        |   |   | 745         |   |   |   | 745         |   |   |   | 745 |   |
| Retained      earnings                                                            |   |   | 2,803       |   |   |   | 2,418       |   |   |   | 2,177 |   |
| Accumulated      other comprehensive income/(loss)                                |   |   | (37         | )      |   |   | 508         |   |   |   | 316 |   |
| Total      stockholder’s equity                                             |   |   | 3,511       |   |   |   | 3,671       |   |   |   | 3,238 |   |
|                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |
| Total      liabilities and stockholder’s equity                             |   | $      | 33,082      |   |   | $      | 29,429      |   |   | $ | 27,336 |   |
|                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |

----

|                                                                                                                                                                               |   | 2008   |                      |   | 2007   |   |   | 2006   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------|--------|--------|--------|--------|--------|--------|
| Common      stock – one share (at paid-in amount):                                                                                                                           |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at beginning of year                                                                                                                                                  |   | $      | 745                       |   |   |   |   |   | $      | 745 |   |   |   |   |   | $ | 745 |   |   |   |   |
| Balance      at year-end                                                                                                                                                           |   |   |   745           |   |   |   |   |   |   |   745 |   |   |   |   |   |   |   745 |   |   |   |   |
|                                                                                                                                                                               |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retained      earnings:                                                                                                                                                            |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at beginning of year                                                                                                                                                  |   |   | 2,418                     |   |   |   |   |   |   | 2,177 |   |   |   |   |   |   | 2,054 |   |   |   |   |
|   Adjustment      to adopt FIN 48                                                                                                                                        |   |   | -                         |   |   |   |   |   |   | (3 | ) |   |   |   |   |   | - |   |   |   |   |
|        Profit                                                                                                                                                                 |   |   | 385                       |   |   | $      | 385    |   |   |   | 494 |   |   | $ | 494 |   |   |   | 473 |   |   | $ | 473 |   |
|        Dividend paid to Cat Inc.                                                                                                                                              |   |   |     - |   |   |   |   |   |   |   | (250 | ) |   |   |   |   |   |   | (350 | ) |   |   |   |   |
| Balance      at year-end                                                                                                                                                           |   |   |  2,803               |   |   |   |   |   |   |   |  2,418 |   |   |   |   |   |   |   |  2,177 |   |   |   |   |   |
|                                                                                                                                                                               |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated      other comprehensive income/(loss):                                                                                                                                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation adjustment                                                                                                                                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at beginning of year, net of tax of:2008      – $ -; 2007 – $ -; 2006 – $ -                                                                         |   |   | 517                       |   |   |   |   |   |   |   | 295 |   |   |   |   |   |   |   | 141 |   |   |   |   |   |
|            Aggregate adjustment for year, net of tax of:  2008      – $133; 2007 – $ -; 2006 – $ -                            |   |   |   (477          | )      |   |   | (477   | )      |   |   |   222 |   |   |   | 222 |   |   |   |   154 |   |   |   | 154 |   |
| Balance      at year-end, net of tax of:2008      – $133; 2007 – $ -; 2006 – $ -                                                                                 |   |   |    40      |   |   |   |   |   |   |   |   517 |   |   |   |   |   |   |   |   295 |   |   |   |   |   |
| Interest      rate derivative instruments (Notes 1G and 10)                                                                                                                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at beginning of year net of tax of:2008 –      $8; 2007 – $9; 2006 – $13                                                             |   |   | (11                       | )      |   |   |   |   |   |   | 16 |   |   |   |   |   |   |   | 22 |   |   |   |   |   |
|           Net gains/(losses) deferred during year net of tax of:           2008 – $38; 2007 – $7; 2006 – $5              |   |   | (75                       | )      |   |   | (75    | )      |   |   | (11 | ) |   |   | (11 | ) |   |   | 6 |   |   |   | 6 |   |
|           Net (gains)/losses reclassed to earnings during year net of                tax of: 2008 – $8; 2007 – $10; 2006 – $9 |   |   |   16            |   |   |   | 16     |   |   |   |   (16 | ) |   |   | (16 | ) |   |   | (12 | ) |   |   | (12 | ) |
| Balance      at year-end net of tax of:2008      – $38; 2007 – $8; 2006 – $9                                                                                     |   |   |   (70           | )      |   |   |   |   |   |   |   (11 | ) |   |   |   |   |   |   |   16 |   |   |   |   |   |
| Retained      interests                                                                                                                                                            |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at beginning of year, net of tax of:2008      – $1; 2007 – $3; 2006 – $2                                                                            |   |   | 2                         |   |   |   |   |   |   |   | 5 |   |   |   |   |   |   |   | 4 |   |   |   |   |   |
|        Aggregate adjustment for year, net of tax of:       2008 – $5; 2007 – $2; 2006 – $1                                                             |   |   |  (9                  | )      |   |   | (9     | )      |   |   |  (3 | ) |   |   | (3 | ) |   |   |  1 |   |   |   | 1 |   |
| Balance      at year-end, net of tax of:2008      – $4; 2007 – $1; 2006 – $3                                                                                     |   |   |  (7                  | )      |   |   |   |   |   |   |  2 |   |   |   |   |   |   |   |  5 |   |   |   |   |   |
| Total      accumulated other comprehensive income/(loss)                                                                                                                           |   |   |    (37     | )      |   |   |   |   |   |   |   508 |   |   |   |   |   |   |   |   316 |   |   |   |   |   |
|                                                                                                                                                                               |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income/(loss)                                                                                                                                                   |   |   |                      |   |   | $      | (160   | )      |   |   |   |   |   | $ | 686 |   |   |   |   |   |   | $ | 622 |   |
|                                                                                                                                                                               |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      stockholder's equity                                                                                                                                                    |   | $      | 3,511                     |   |   |   |   |   |   | $ | 3,671 |   |   |   |   |   |   | $ | 3,238 |   |   |   |   |   |
|                                                                                                                                                                               |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                |   | 2008   |    |   | 2007   |   |     | 2006   |   |
|-------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|----------|--------|--------|
| Cash      flows from operating activities:                                          |   |   |    |   |   |   |     |   |   |
| Profit                                                                              |   | $      | 385     |   |   | $      | 494      |   |   | $ | 473 |   |
| Adjustments      for non-cash items:                                                |   |   |    |   |   |   |     |   |   |   |   |   |
| Depreciation      and amortization                                                  |   |   | 755     |   |   |   | 702      |   |   |   | 654 |   |
| Amortization      of receivables purchase discount                                  |   |   | (243    | )      |   |   | (327     | )      |   |   | (386 | ) |
| Provision      for credit losses                                                    |   |   | 192     |   |   |   | 97       |   |   |   | 68 |   |
| Gain      on sales of receivables and securities                                    |   |   | (30     | )      |   |   | (19      | )      |   |   | (21 | ) |
| Other,      net                                                                     |   |   | 83      |   |   |   | (20      | )      |   |   | (20 | ) |
| Changes      in assets and liabilities:                                             |   |   |    |   |   |   |     |   |   |   |   |   |
| Receivables      from others                                                        |   |   | (107    | )      |   |   | (95      | )      |   |   | 5 |   |
| Other      receivables/payables with Caterpillar                                    |   |   | 82      |   |   |   | (30      | )      |   |   | (5 | ) |
| Payable      to dealers and others                                                  |   |   | (63     | )      |   |   | 9        |   |   |   | 59 |   |
| Accrued      interest payable                                                       |   |   | 112     |   |   |   | 51       |   |   |   | (23 | ) |
| Accrued      expenses and other liabilities, net                                    |   |   | 59      |   |   |   | 9        |   |   |   | (32 | ) |
| Income      taxes receivable/payable                                                |   |   | (140    | )      |   |   | (18      | )      |   |   | 26 |   |
| Other      assets, net                                                              |   |   | (7      | )      |   |   | 4        |   |   |   | 2 |   |
| Net      cash provided by operating activities                                      |   |   | 1,078   |   |   |   | 857      |   |   |   | 800 |   |
|                                                                                |   |   |    |   |   |   |     |   |   |   |   |   |
| Cash      flows from investing activities:                                          |   |   |    |   |   |   |     |   |   |   |   |   |
| Expenditures      for equipment on operating leases and for non-leased    equipment |   |   | (1,608  | )      |   |   | (1,366   | )      |   |   | (1,152 | ) |
| Proceeds      from disposals of equipment                                           |   |   | 952     |   |   |   | 775      |   |   |   | 818 |   |
| Additions      to finance receivables                                               |   |   | (37,811 | )      |   |   | (36,251  | )      |   |   | (35,561 | ) |
| Collections      of finance receivables                                             |   |   | 32,135  |   |   |   | 33,456   |   |   |   | 32,670 |   |
| Proceeds      from sales of receivables                                             |   |   | 2,459   |   |   |   | 2,378    |   |   |   | 2,110 |   |
| Net      change in Notes receivable from Caterpillar                                |   |   | 27      |   |   |   | 2        |   |   |   | 14 |   |
| Other,      net                                                                     |   |   | 49      |   |   |   | (23      | )      |   |   | 76 |   |
| Net      cash used in investing activities                                          |   |   | (3,797  | )      |   |   | (1,029   | )      |   |   | (1,025 | ) |
|                                                                                |   |   |    |   |   |   |     |   |   |   |   |   |
| Cash      flows from financing activities:                                          |   |   |    |   |   |   |     |   |   |   |   |   |
| Payable      to Caterpillar – borrowings and other                            |   |   | 168     |   |   |   | 177      |   |   |   | (123 | ) |
| Proceeds      from debt issued (original maturities greater than three      months) |   |   | 16,257  |   |   |   | 10,815   |   |   |   | 9,814 |   |
| Payments      on debt issued (original maturities greater than three    months)     |   |   | (14,139 | )      |   |   | (10,285  | )      |   |   | (9,531 | ) |
| Short-term      borrowings, net (original maturities three months or less)          |   |   | 1,337   |   |   |   | (256     | )      |   |   | 457 |   |
| Dividend      paid to Cat Inc.                                                      |   |   | -       |   |   |   | (250     | )      |   |   | (350 | ) |
| Other                                                                               |   |   |  3 |   |   |   |  10 |   |   |   | 4 |   |
| Net      cash provided by financing activities                                      |   |   | 3,626   |   |   |   | 211      |   |   |   | 271 |   |
|                                                                                |   |   |    |   |   |   |     |   |   |   |   |   |
| Effect      of exchange rate changes on cash                                        |   |   | (12     | )      |   |   | 10       |   |   |   | 3 |   |
|                                                                                |   |   |    |   |   |   |     |   |   |   |   |   |
| Increase      in cash and cash equivalents                                          |   |   | 895     |   |   |   | 49       |   |   |   | 49 |   |
|                                                                                |   |   |    |   |   |   |     |   |   |   |   |   |
| Cash      and cash equivalents at beginning of year                                 |   |   | 185     |   |   |   | 136      |   |   |   | 87 |   |
|                                                                                |   |   |    |   |   |   |     |   |   |   |   |   |
| Cash      and cash equivalents at end of year                                       |   | $      | 1,080   |   |   | $      | 185      |   |   | $ | 136 |   |
| Cash      paid for interest                                                         |   | $      | 1,163   |   |   | $      | 1,127    |   |   | $ | 1,009 |   |
| Cash      paid for taxes                                                            |   | $      | 155     |   |   | $      | 228      |   |   | $ | 197 |   |
|                                                                                |   |   |    |   |   |   |     |   |   |   |   |   |

----

----

| ·   | Retail finance      revenue on finance leases and installment sale contracts is      recognized over the term of the contract at a constant rate of return on      the scheduled outstanding principal balance.  Revenue on retail      notes is recognized based on the daily balance of retail receivables      outstanding and the applicable interestrate. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating lease      revenue is recorded on a straight-line basis in the period earned      over the life of the contract. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | Wholesale      revenue on installment sale contracts and finance leases related to      financing dealer inventory and rental fleets is recognized over the term      of the contract at a constant rate of return on the scheduled outstanding      principal balance.  Revenue on wholesale notes is recognized      based on the daily balance of wholesale receivables outstanding and the      applicable effective interest rate. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Loan origination and      commitment fees are deferred and then amortized to revenue using      the interest method over the life of the finance    receivables. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Initial      adoption of FIN 48                  | January      1,2007Prior      toFIN 48Adjustment |   | FIN 48Adjustment |   | January      1,2007PostFIN 4 Adjustment |
|--------------------------------------------------|-------------------------------------------------------|--------|-----------------------|--------|---------------------------------------------------|
| (Millions      of dollars)                       |                                                  |   |                  |   |                                              |   |   |   |   |   |
| Income      taxes payable                        | $                                                     | 98     |                  | $      | 15                                                |   |   | $ | 113 |   |
| Deferred      income taxes and other liabilities |                                                  | 379    |                  |   | (12                                               | ) |   |   | 367 |   |
| Retained      earnings                           |                                                  | 2,177  |                  |   | (3                                                | ) |   |   | 2,174 |   |
|                                             |                                                  |   |                  |   |                                              |   |   |   |   |   |

----

----

----

----

| (Millions      of dollars)                             |   |                           |      |   |                                    |   |           |                |   |   |                   |   |   |        |    |   |           |   |   |   |   |
|--------------------------------------------------------|--------|--------------------------------|-----------|--------|-----------------------------------------|--------|----------------|---------------------|--------|--------|------------------------|--------|--------|-------------|---------|--------|----------------|--------|--------|--------|--------|
| Amounts due in                                         |   | RetailInstallmentSaleContracts |      |   | WholesaleInstallmentSale Contracts |   |           | RetailFinanceLeases |   |   | WholesaleFinanceLeases |   |   | RetailNotes |    |   | WholesaleNotes |   |   | Total  |   |
|                                                   |   |                           |      |   |                                    |   |           |                |   |   |                   |   |   |        |    |   |           |   |   |   |   |
| 2009                                                   |   | $                              | 2,950     |   |                                    | $      | 210            |                |   | $      | 3,374                  |   |   | $           | 114     |   |           | $      | 2,937  |   |   | $ | 3,122 |   |   | $ | 12,707 |   |
| 2010                                                   |   |                           | 1,989     |   |                                    |   | 10             |                |   |   | 2,397                  |   |   |        | 50      |   |           |   | 1,481  |   |   |   | 204 |   |   |   | 6,131 |   |
| 2011                                                   |   |                           | 1,249     |   |                                    |   | 15             |                |   |   | 1,450                  |   |   |        | 32      |   |           |   | 1,095  |   |   |   | 143 |   |   |   | 3,984 |   |
| 2012                                                   |   |                           | 642       |   |                                    |   | 13             |                |   |   | 652                    |   |   |        | 6       |   |           |   | 729    |   |   |   | 12 |   |   |   | 2,054 |   |
| 2013                                                   |   |                           | 241       |   |                                    |   | 24             |                |   |   | 239                    |   |   |        | 2       |   |           |   | 743    |   |   |   | 1 |   |   |   | 1,250 |   |
|    Thereafter                           |   |                           |  129 |   |                                    |   |    - |                |   |   |  213              |   |   |        |  1 |   |           |   | 1,224  |   |   |   |  1 |   |   |   | 1,568 |   |
|                                                   |   |                           | 7,200     |   |                                    |   | 272            |                |   |   | 8,325                  |   |   |        | 205     |   |           |   | 8,209  |   |   |   | 3,483 |   |   |   | 27,694 |   |
| Residual      value                                    |   |                           | -         |   |                                    |   | -              |                |   |   | 1,387                  |   |   |        | 133     |   |           |   | -      |   |   |   | - |   |   |   | 1,520 |   |
| Less:      Unearned income                             |   |                           | (674      | )      |                                    |   | (7             | )                   |   |   | (953                   | )      |   |        | (15     | )      |           |   | (108   | )      |   |   | (60 | ) |   |   | (1,817 | ) |
|                                                   |   |                           |      |   |                                    |   |           |                |   |   |                   |   |   |        |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                  |   | $                              | 6,526     |   |                                    | $      | 265            |                |   | $      | 8,759                  |   |   | $           | 323     |   |           | $      | 8,101  |   |   | $ | 3,423 |   |   | $ | 27,397 |   |
| Add:      Notes receivable from  Caterpillar |   |                           |      |   |                                    |   |           |                |   |   |                   |   |   |        |    |   |           |   |   |   |   |   |   |   |   |   | 81 |   |
| Less:      Allowance for  credit      losses |   |                           |      |   |                                    |   |           |                |   |   |                   |   |   |        |    |   |           |   |   |   |   |   |   |   |   |   | (395 | ) |
| Total      net finance  receivables          |   |                           |      |   |                                    |   |           |                |   |   |                   |   |   |        |    |   |           |   |   |   |   |   |   |   |   | $ | 27,083 |   |
|                                                   |   |                           |      |   |                                    |   |           |                |   |   |                   |   |   |        |    |   |           |   |   |   |   |   |   |   |   |   |   |   |

| (Millions      of dollars)                                                                                                                                                                             |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Impaired      loans/finance leases for which there is a related allowance for credit      losses  (related allowance      of $59(1)      million, $35 million and $26 million, respectively) |   | $      | 258    | (1)    |   | $      | 166    |   |   | $ | 133 |   |
| Impaired      loans/finance leases for which there is no related allowance for credit      losses  (due to sufficient      collateral value)                                                 |   |   | 221    |   |   |   | 53     |   |   |   | 60 |   |
| Total      investment in impaired loans/finance leases as of December    31,                                                                                                                           |   | $      | 479    |   |   | $      | 219    |   |   | $ | 193 |   |
|                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      investment in impaired loans/finance leases                                                                                                                                               |   | $      | 306    |   |   | $      | 200    |   |   | $ | 168 |   |
|                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | Includes      impaired loans of $108 million primarily reflecting the fair value of the      loan's associated collateral.See      Note 13 for more information. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Millions      of dollars)                                               |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Investment      in loans/leases on non-accrual status as of December 31, |   | $      | 422    |   |   | $      | 232    |   |   | $ | 190 |   |
| Investment      in loans/leases past due over 90 days and still accruing |   | $      | 119    |   |   | $      | 47     |   |   | $ | 18 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions      of dollars)                                                                                                                          |   | 2008   |      |   | 2007   |   |     | 2006   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|
| Balance      at beginning of year                                                                                                                   |   | $      | 353       |   |   | $      | 319      |   |   | $ | 302 |   |
| Provision      for credit losses                                                                                                                    |   |   | 192       |   |   |   | 97       |   |   |   | 68 |   |
| Receivables      written off                                                                                                                        |   |   | (144      | )      |   |   | (91      | )      |   |   | (63 | ) |
| Recoveries      on receivables previously written off                                                                                               |   |   | 23        |   |   |   | 23       |   |   |   | 16 |   |
| Adjustment      due to securitization of receivables                                                                                                |   |   | (13       | )      |   |   | (9       | )      |   |   | (13 | ) |
| Foreign      currency translation adjustment                                                                                                        |   |   |  (16 | )      |   |   |  14 |   |   |   |  9 |   |
| Balance      at end of year                                                                                                                         |   | $      | 395       |   |   | $      | 353      |   |   | $ | 319 |   |
|                                                                                                                                                |   |   |      |   |   |   |     |   |   |   |   |   |
| Allowance      for credit losses as a percent of finance receivables (excluding      Notesreceivable      from Caterpillar), net of unearned income |   |   | 1.44      | %      |   |   | 1.39     | %      |   |   | 1.33 | % |
|                                                                                                                                                |   |   |      |   |   |   |     |   |   |   |   |   |

----

| (Millions      of dollars)                      |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Total      minimum lease payments receivable    |   | $      | 8,530  |   |   | $      | 8,046  |   |   | $ | 6,757 |   |
| Estimated      residual value of leased assets: |   |   |   |   |   |   |   |   |   |   |   |   |
|     Guaranteed              |   |   | 791    |   |   |   | 799    |   |   |   | 572 |   |
| Unguaranteed                                    |   |   | 729    |   |   |   | 747    |   |   |   | 676 |   |
|                                            |   |   | 10,050 |   |   |   | 9,592  |   |   |   | 8,005 |   |
| Less:      Unearned income                      |   |   | (968   | )      |   |   | (959   | )      |   |   | (820 | ) |
| Net      finance leases                         |   | $      | 9,082  |   |   | $      | 8,633  |   |   | $ | 7,185 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

|                                  |   | 2008   |   | 2007   |   | 2006   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|
| Discount      rate                    |   |   | 7.2    | %      |   |   | 8.4 | % |   |   | 11.2 | % |
| Weighted-average      prepayment rate |   |   | 14.5   | %      |   |   | 14.0 | % |   |   | 14.0 | % |
| Expected      credit losses           |   |   | 1.6    | %      |   |   | 1.5 | % |   |   | 1.5 | % |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                 |   | 2008               |   | 2007   |              | 2006   |
|----------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
| Cash      flow weighted average discount rates on retained interests |   | 16.7%      to 23.3 | %      |   | 8.3%      to 11.5 | %      |   | 5.9%      to 9.1 | % |
| Weighted-average      maturity in months                             |   |               | 28     |   |              |   | 30 |   |   |   | 31 |   |
| Expected      prepayment rate                                        |   |               | 19.0   | %      |              |   | 14.0 | % |   |   | 14.0 | % |
| Expected      credit losses                                          |   | 1.7%      to 3.1   | %      |   | 0.6%      to 1.3  | %      |   | 0.5%      to 1.3 | % |
|                                                                 |   |               |   |   |              |   |   |   |   |   |   |   |

----

|   | Characteristics      of securitized retail receivables |
|--------|--------------------------------------------------------|

| (Millions      of dollars)                                                    |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Total      securitized principal balance at December 31,                      |   | $      | 909    |   |   | $      | 1,159  |   |   | $ | 1,227 |   |
| Average      securitized principal balance for the year ended December    31, |   | $      | 1,147  |   |   | $      | 1,064  |   |   | $ | 1,162 |   |
| Loans      > 30 days past due at year ended December 31,                   |   | $      | 98     |   |   | $      | 65     |   |   | $ | 34 |   |
| Net      credit losses during the year                                   |   | $      | 23     |   |   | $      | 9      |   |   | $ | 5 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions      of dollars)                           |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash      proceeds from initial sales of receivables |   | $      | 600    |   |   | $      | 650    |   |   | $ | 947 |   |
| Purchases      of contracts through clean-up calls   |   | $      | 81     |   |   | $      | 64     |   |   | $ | 63 |   |
| Servicing      fees received                         |   | $      | 12     |   |   | $      | 11     |   |   | $ | 12 |   |
| Other      cash flows received on retained interests |   | $      | 25     |   |   | $      | 35     |   |   | $ | 41 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Millions      of dollars)                                         |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash      proceeds from sales of receivables to conduit            |   | $      | 1,510  |   |   | $      | 1,512  |   |   | $ | 1,043 |   |
| Servicing      fees received                                       |   | $      | 1      |   |   | $      | 1      |   |   | $ | 1 |   |
| Cash      flows received on the interests that continue to be held |   | $      | 11,270 |   |   | $      | 13,680 |   |   | $ | 15,168 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |

|   | Total      off-balance sheet managed assets as of December  31, |
|--------|-----------------------------------------------------------------|

| (Millions of      dollars)                                            |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                  |   |   |   |   |   |   |   |   |   |
| Securitized      Retail Installment Sale Contracts and Finance Leases |   |   |   |   |   |   |   |   |   |
| Installment      sale contracts securitized                           |   | $      | 877    |   |   | $      | 1,105  |   |   | $ | 1,174 |   |
| Finance      leases securitized                                       |   |   | 32     |   |   |   | 54     |   |   |   | 53 |   |
| Less:      Retained interests (included in Other assets)              |   |   | (52    | )      |   |   | (49    | )      |   |   | (68 | ) |
| Off-balance      sheet securitized retail receivables                 |   |   | 857    |   |   |   | 1,110  |   |   |   | 1,159 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      of Interests in Wholesale Receivables                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Wholesale      receivables                                            |   |   | 240    |   |   |   | 240    |   |   |   | 240 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Managed Assets                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail      installment sale contracts                                |   |   | 283    |   |   |   | 122    |   |   |   | 111 |   |
| Retail      finance leases                                            |   |   | 198    |   |   |   | 155    |   |   |   | 90 |   |
| Operating      leases                                                 |   |   | 122    |   |   |   | 128    |   |   |   | 119 |   |
| Retail      notes receivable                                          |   |   | 30     |   |   |   | 36     |   |   |   | 42 |   |
| Other      managed receivables/leases                                 |   |   | 633    |   |   |   | 441    |   |   |   | 362 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      off-balance sheet managed assets                           |   | $      | 1,730  |   |   | $      | 1,791  |   |   | $ | 1,761 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| (Millions      of dollars)                      |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Equipment      on operating leases, at cost     |   | $      | 4,421  |   |   | $      | 4,466  |   |   | $ | 3,833 |   |
|   Less:      Accumulated depreciation |   |   | (1,393 | )      |   |   | (1,477 | )      |   |   | (1,271 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Equipment      on operating leases, net         |   | $      | 3,028  |   |   | $      | 2,989  |   |   | $ | 2,562 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |

| 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total  |
|------|------|------|------|------|------------|--------|
| $710 | $523 | $321 | $170 | $70  | $27        | $1,821 |

----

|                                     |   | 2008   |   | 2007   |   | 2006   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|
| Retail      Financing:                   |   |   |   |   |   |   |   |   |   |
| Installment      sale contracts          |   |   | 21     | %      |   |   | 25 | % |   |   | 25 | % |
| Customer      loans                      |   |   | 21     | %      |   |   | 18 | % |   |   | 16 | % |
| Finance      (non-tax) leases            |   |   | 21     | %      |   |   | 20 | % |   |   | 17 | % |
| Tax      leases (operating or finance)   |   |   | 17     | %      |   |   | 18 | % |   |   | 17 | % |
| Wholesale      financing                 |   |   | 13     | %      |   |   | 15 | % |   |   | 21 | % |
| Dealer      loans                        |   |   | 6      | %      |   |   | 3 | % |   |   | 3 | % |
| Government      lease-purchase contracts |   |   | 1      | %      |   |   | 1 | % |   |   | 1 | % |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| ·   | The      five-year facility of $1.62 billion expires in September    2012. |
|--------------------|----------------------------------------------------------------------------|

| ·   | The      five-year facility of $2.98 billion expires in September    2011. |
|--------------------|----------------------------------------------------------------------------|

| ·   | The      364-day facility was increased from $1.95 billion to $2.25 billion and      will expire in September 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

----

----

| (Millions      of dollars)                            |   | 2008    |   | 2007   |      | 2006   |
|-------------------------------------------------------|--------|---------|--------|--------|-----------|--------|
|                                                  |   | Balance |   |   | Avg. Rate |   | Balance |   |   | Avg. Rate |   | Balance |   |   | Avg. Rate |
|                                                  |   |    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      paper, net                            |   | $       | 5,717  |   |      |   | 2.4 | % |   | $ | 4,935 |   |   |   | 4.3 | % |   | $ | 4,557 |   |   |   | 4.4 | % |
| Variable      denomination floating rate demand notes |   |    | 543    |   |      |   | 3.6 | % |   |   | 699 |   |   |   | 5.1 | % |   |   | 590 |   |   |   | 5.4 | % |
| Bank      borrowings                                  |   |    | 817    |   |      |   | 7.9 | % |   |   | 550 |   |   |   | 7.4 | % |   |   | 251 |   |   |   | 6.0 | % |
| Total                                                 |   | $       | 7,077  |   |      |   |   |   |   | $ | 6,184 |   |   |   |   |   |   | $ | 5,398 |   |   |   |   |   |
|                                                  |   |    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| (Millions      of dollars)                                   |   | 2008    |   | 2007   |      | 2006   |
|--------------------------------------------------------------|--------|---------|--------|--------|-----------|--------|
|                                                         |   | Balance |   |   | Avg. Rate |   | Balance |   |   | Avg. Rate |   | Balance |   |   | Avg. Rate |
|                                                         |   |    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Medium-term      notes                                       |   | $       | 19,656 |   |      |   | 4.2 | % |   | $ | 17,325 |   |   |   | 4.7 | % |   | $ | 16,899 |   |   |   | 4.6 | % |
| Unamortized      discount                                    |   |    | (9     | )      |      |   |   |   |   |   | (3 | ) |   |   |   |   |   |   | (5 | ) |   |   |   |   |
|   Medium-term notes,      net                      |   |    | 19,647 |   |      |   |   |   |   |   | 17,322 |   |   |   |   |   |   |   | 16,894 |   |   |   |   |   |
| Bank      borrowings                                         |   |    | 755    |   |      |   | 7.1 | % |   |   | 615 |   |   |   | 8.0 | % |   |   | 425 |   |   |   | 8.9 | % |
| Loans      from a company-  owned      partnership |   |    | -      |   |      |   | - |   |   |   | 8 |   |   |   | 7.0 | % |   |   | 8 |   |   |   | 7.0 | % |
| Deposit      obligation (1)                                  |   |    | 232    |   |      |   |   |   |   |   | 232 |   |   |   |   |   |   |   | 232 |   |   |   |   |   |
|   Total                                            |   | $       | 20,634 |   |      |   |   |   |   | $ | 18,177 |   |   |   |   |   |   | $ | 17,559 |   |   |   |   |   |
|                                                         |   |    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions of      dollars) |   |   |   |
|----------------------------|--------|--------|--------|
| 2009                       |   | $      | 5,036  |   |
| 2010                       |   |   | 4,734  |   |
| 2011                       |   |   | 2,326  |   |
| 2012                       |   |   | 1,562  |   |
| 2013                       |   |   | 1,800  |   |
| Thereafter                 |   |   | 5,176  |   |
| Total                      |   | $      | 20,634 |   |
|                       |   |   |   |   |

----

----

----

| (Millions      of dollars)                                                                                   |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Gain/(loss)      on designated interest rate derivatives—included in Other         revenues  |   | $      | 471    |   |   | $      | 103    |   |   | $ | (44 | ) |
| Gain/(loss)      on hedged debt—included in Other revenues                                             |   | $      | (474   | )      |   | $      | (103   | )      |   | $ | 44 |   |
| Amortization      of the net gain on liquidated swaps – included in Interest         expense |   | $      | 1      |   |   | $      | 2      |   |   | $ | 6 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Millions      of dollars)               |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Guarantees      with customers           |   | $      | 119    |   |   | $      | 46     |   |   | $ | 37 |   |
| Limited      indemnity                   |   |   | 25     |   |   |   | 30     |   |   |   | 35 |   |
| Guarantees      with Caterpillar dealers |   |   | -      |   |   |   | 250    |   |   |   | 362 |   |
| Guarantees      – other            |   |   | -      |   |   |   | -      |   |   |   | 3 |   |
| Total      guarantees                    |   | $      | 144    |   |   | $      | 326    |   |   | $ | 437 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| (Millions      of dollars) |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| U.S.                       |   | $      | 204    |   |   | $      | 413    |   |   | $ | 417 |   |
| Non-U.S.                   |   |   | 301    |   |   |   | 315    |   |   |   | 271 |   |
|                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                      |   | $      | 505    |   |   | $      | 728    |   |   | $ | 688 |   |
|                       |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Millions      of dollars)                   |   |  2008 |    |   | 2007   |   |    |  2006 |   |
|----------------------------------------------|--------|------------|---------|--------|--------|--------|---------|------------|--------|
| Current      income tax provision (credit):  |   |       |    |   |   |   |    |       |   |
|   U.S.                             |   | $          | (28     | )      |   | $      | 93      |       |   | $ | 153 |   |
|   Non-U.S.                         |   |       | 60      |   |   |   | 106     |       |   |   | 65 |   |
|   State      (U.S.)                |   |       |  - |   |   |   |  6 |       |   |   |  6 |   |
|                                         |   |       | 32      |   |   |   | 205     |       |   |   | 224 |   |
| Deferred      income tax provision (credit): |   |       |    |   |   |   |    |       |   |   |   |   |
|   U.S.                             |   |       | 39      |   |   |   | 50      |       |   |   | (20 | ) |
|   Non-U.S.                         |   |       | 49      |   |   |   | (23     | )          |   |   | 10 |   |
|   State      (U.S.)                |   |       |  - |   |   |   |  2 |       |   |   |  1 |   |
|                                         |   |       | 88      |   |   |   | 29      |       |   |   | (9 | ) |
|                                         |   |       |    |   |   |   |    |       |   |   |   |   |
| Total      Provision for income taxes        |   | $          | 120     |   |   | $      | 234     |       |   | $ | 215 |   |
|                                         |   |       |    |   |   |   |    |       |   |   |   |   |

| (Millions      of dollars)                                                                     |   | 2008   |   |   | 2007   |   |     | 2006   |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|----------|--------|--------|
| Taxes      computed at U.S. statutory rates                                                    |   | $      | 177    |   |   | $      | 257      |   |   | $ | 242 |   |
| (Decreases)      increases in taxes resulting from:                                            |   |   |   |   |   |   |     |   |   |   |   |   |
|   Subsidiaries'      results subject to tax rates other than U.S. statutory    rates |   |   | (56    | )      |   |   | (29      | )      |   |   | (22 | ) |
|   Other,      net                                                                    |   |   | (1     | )      |   |   |   6 |   |   |   | (5 | ) |
|                                                                                           |   |   |   |   |   |   |     |   |   |   |   |   |
| Provision      for income taxes                                                                |   | $      | 120    |   |   | $      | 234      |   |   | $ | 215 |   |
|                                                                                           |   |   |   |   |   |   |     |   |   |   |   |   |

----

| (Millions      of dollars)                                                                 |   | 2008   |   |   |        2007 |   |    |        2006 |   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------------|--------|---------|------------------|--------|
| Deferred      tax assets:                                                                  |   |   |   |   |             |   |    |             |   |
|   Allowance      for credit losses                                               |   | $      | 108    |   |             | $      | 88      |             |   | $ | 70 |   |
|   Tax      credit carryforwards                                                  |   |   | 14     |   |             |   | 6       |             |   |   | 36 |   |
|   Deferred      income taxes on derivative instruments and retained    interests |   |   | 42     |   |             |   | 7       |             |   |   | - |   |
|   Net      operating loss carryforwards                                          |   |   | 56     |   |             |   | 24      |             |   |   | 26 |   |
|                                                                                       |   |   | 220    |   |             |   | 125     |             |   |   | 132 |   |
|                                                                                       |   |   |   |   |             |   |    |             |   |   |   |   |
| Deferred      income tax liabilities - primarily lease basis differences                   |   |   | (575   | )      |             |   | (435    | )                |   |   | (414 | ) |
| Valuation      allowance for deferred income tax assets                                    |   |   | (5     | )      |             |   | (4      | )                |   |   | (6 | ) |
| Deferred      income tax on translation adjustment                                         |   |   | (133   | )      |             |   | -       |             |   |   | - |   |
| Deferred      income taxes on derivative instruments and retained    interests             |   |   | -      |   |             |   |  - |             |   |   | (12 | ) |
|                                                                                       |   |   | (713   | )      |             |   | (439    | )                |   |   | (432 | ) |
|                                                                                       |   |   |   |   |             |   |    |             |   |   |   |   |
| Deferred      income taxes – net                                                     |   | $      | (493   | )      |             | $      | (314    | )                |   | $ | (300 | ) |
|                                                                                       |   |   |   |   |             |   |    |             |   |   |   |   |

| (Millions      of dollars)                                   |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Assets:                                                      |   |   |   |   |   |   |   |   |   |
|   Deferred      and refundable income taxes        |   | $      | 36     |   |   | $      | 69     |   |   | $ | 40 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   Deferred      income taxes and other liabilities |   |   | (529   | )      |   |   | (383   | )      |   |   | (340 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      income taxes - net                             |   | $      | (493   | )      |   | $      | (314   | )      |   | $ | (300 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions      of dollars) |   |   |   |   |
|----------------------------|--------|--------|--------|--------|
| 2009-2015                  | 2016   | 2017   | 2018   | 2019   | Total |
| $-                         | $-     | $-     | $-     | $5     | $5 |
|                       |   |   |   |   |   |

----

| (Millions      of dollars) |   |   |   |        |      |
|----------------------------|--------|--------|--------|-------------|-----------|
| 2009                       | 2010   | 2011   | 2012   | 2013 - 2023 | Unlimited | Total |
| $-                         | $1     | $1     | $-     | $106        | $109      | $217 |
|                       |   |   |   |        |      |   |

| (Millions      of dollars) |   |   |   |      |
|----------------------------|--------|--------|--------|-----------|
| 2009                       | 2010   | 2011   | 2012   | 2013-2028 | Total |
| $-                         | $-     | $-     | $-     | $76       | $76 |
|                       |   |   |   |      |   |

| Reconciliation      of unrecognized income tax benefits(1): (Millions      of dollars)     |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Balance      at beginning of year                                                               |   | $      | 16     |   |   | $      | 30 |   |
| Increases/(decreases)      for income tax positions related to prior year                       |   |   | 5      |   |   |   | (14 | ) |
| Balance      at end of year                                                                     |   | $      | 21     |   |   | $      | 16 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| (1) Foreign      currency translation amounts are included within each line as      applicable. |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |

----

----

| ·   | Level 1 – Quoted prices      for identical instruments in activemarkets. |
|--------------------|--------------------------------------------------------------------------------|

| ·   | Level 2 – Quoted prices      for similar instruments in active markets; quoted prices for identical or      similar instruments in markets that are not active; and model-derived      valuations in which all significant inputs or significant value-drivers      are observable in active markets. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 – Model-derived      valuations in which one or more significant inputs or significant      value-drivers are unobservable. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Millions      of dollars)Assets                  |   | Level      1 |   |   | Level      2 |   |          | Level      3 |   |   | Total      Assets/Liabilities,at      Fair Value |   |
|---------------------------------------------------|--------|--------------|--------|--------|--------------|--------|---------------|--------------|--------|--------|--------------------------------------------------|--------|
|   Derivative      financial instruments |   | $            | -      |   |         | $      | 331           |         |   | $      | -                                                |   |   | $ | 331 |   |
|   Securitized      retained interests   |   |         | -      |   |         |   | -             |         |   |   | 52                                               |   |   |   | 52 |   |
| Total      Assets                                 |   | $            | -      |   |         | $      | 331           |         |   | $      | 52                                               |   |   | $ | 383 |   |
| Liabilities                                       |   |         |   |   |         |   |          |         |   |   |                                             |   |   |   |   |   |
|   Guarantees                            |   | $            | -      |   |         | $      | -             |         |   | $      | 2                                                |   |   | $ | 2 |   |
| Total      Liabilities                            |   | $            | -      |   |         | $      |   - |         |   | $      | 2                                                |   |   | $ | 2 |   |
|                                              |   |         |   |   |         |   |          |         |   |   |                                             |   |   |   |   |   |

| (Millions      of dollars)                              |   | Securitized      RetainedInterests |   |   | Guarantees |   |
|---------------------------------------------------------|--------|------------------------------------|--------|--------|------------|--------|
| Balance      as of December 31, 2007                    |   | $                                  | 49     |   |       | $      | 7 |   |
| Total      gains or losses (realized/unrealized)        |   |                               |   |   |       |   |   |   |
|   Included      in earnings                   |   |                               | (21    | )      |       |   | - |   |
|   Included      in other comprehensive income |   |                               | (13    | )      |       |   | - |   |
| Purchases,      issuances and settlements               |   |                               | 37     |   |       |   | (5 | ) |
| Balance      as of December 31, 2008                    |   | $                                  | 52     |   |       | $      | 2 |   |
|                                                    |   |                               |   |   |       |   |   |   |

----

| (Millions      of dollars)                                       |   | 2008      |    |   |  2007 |   |    |  2006     |   |
|------------------------------------------------------------------|--------|----------------|---------|--------|------------|--------|---------|----------------|--------|
|                                                             |   | CarryingAmount |    |   | FairValue  |   |    | CarryingAmount |   |   | FairValue |   |   | CarryingAmount |   |   | FairValue |   |
| Cash      and cash equivalents                                   |   | $              | 1,080   |   |       | $      | 1,080   |           |   | $ | 185 |   |   | $ | 185 |   |   | $ | 136 |   |   | $ | 136 |   |
| Foreign      currency contracts:                                 |   |           |    |   |       |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   In      a receivable position                        |   | $              | 70      |   |       | $      | 70      |           |   | $ | 8 |   |   | $ | 8 |   |   | $ | 9 |   |   | $ | 9 |   |
|   In      a payable position                           |   | $              | (113    | )      |       | $      | (113    | )              |   | $ | (27 | ) |   | $ | (27 | ) |   | $ | (6 | ) |   | $ | (6 | ) |
| Finance      receivables, net(excluding      finance leases (1)) |   | $              | 18,051  |   |       | $      | 17,089  |           |   | $ | 16,506 |   |   | $ | 16,407 |   |   | $ | 16,524 |   |   | $ | 16,506 |   |
| Short-term      borrowings                                       |   | $              | (7,077  | )      |       | $      | (7,077  | )              |   | $ | (6,184 | ) |   | $ | (6,184 | ) |   | $ | (5,398 | ) |   | $ | (5,398 | ) |
| Long-term      debt                                              |   | $              | (20,634 | )      |       | $      | (19,759 | )              |   | $ | (18,177 | ) |   | $ | (18,322 | ) |   | $ | (17,559 | ) |   | $ | (17,441 | ) |
| Interest      rate swaps:                                        |   |           |    |   |       |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   In      a net receivable position                    |   | $              | 501     |   |       | $      | 501     |           |   | $ | 75 |   |   | $ | 75 |   |   | $ | 52 |   |   | $ | 52 |   |
|   In      a net payable position                       |   | $              | (127    | )      |       | $      | (127    | )              |   | $ | (46 | ) |   | $ | (46 | ) |   | $ | (98 | ) |   | $ | (98 | ) |
| Securitized      retained interests                              |   | $              | 52      |   |       | $      | 52      |           |   | $ | 49 |   |   | $ | 49 |   |   | $ | 68 |   |   | $ | 68 |   |
| Guarantees                                                       |   | $              | (2      | )      |       | $      | (2      | )              |   | $ | (7 | ) |   | $ | (7 | ) |   | $ | (9 | ) |   | $ | (9 | ) |
|                                                             |   |           |    |   |       |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | Represents      finance leases with a net carrying value of $8.951 billion, $8.511 billion      and $7.091 billion as of December 31, 2008, 2007 and 2006,      respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (Millions      of dollars)               |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Notes      payable as of December 31,    |   | $      | 435    |   |   | $      | 275    |   |   | $ | 87 |   |
| Notes      receivable as of December 31, |   | $      | 81     |   |   | $      | 74     |   |   | $ | 75 |   |
| Interest      expense                    |   | $      | 10     |   |   | $      | 5      |   |   | $ | 9 |   |
| Interest      earned                     |   | $      | 4      |   |   | $      | 8      |   |   | $ | 13 |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions      of dollars)                                               |   | 2008   |    | 2007   |   | 2006   |
|--------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Purchases      made                                                      |   | $      | 22,056  |   |   | $      | 20,822 |   |   | $ | 23,998 |   |
| Discounts      earned                                                    |   | $      | 243     |   |   | $      | 327 |   |   | $ | 386 |   |
| Servicing      fees paid, net                                            |   | $      |  - |   |   | $      |  - |   |   | $ | 1 |   |
| Balance      as of December 31,                                          |   | $      | 2,456   |   |   | $      | 2,559 |   |   | $ | 4,227 |   |
| Effective      interest rate for receivable purchases as of December 31, |   |   | 6.96    | %      |   |   | 7.83 | % |   |   | 8.17 | % |
|                                                                     |   |   |    |   |   |   |   |   |   |   |   |   |

----

----

| (Millions      of dollars) |   |   |   |
|----------------------------|--------|--------|--------|
| 2009                       |   | $      | 14     |   |
| 2010                       |   |   | 13     |   |
| 2011                       |   |   | 12     |   |
| 2012                       |   |   | 11     |   |
| 2013                       |   |   | 10     |   |
| Thereafter                 |   |   | 65     |   |
| Total                      |   | $      | 125    |   |
|                       |   |   |   |   |

----

----

| ·  | North      America: We have offices in the United States and Canada that serve local      dealers and customers.                                                                                                                                                                                                          |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | Europe:      We have offices in Europe to serve European dealers and      customers.  This segment also includes our office in Russia,      which serves dealers and customers in the Commonwealth of Independent      States, and Dubai, which primarily serves dealers and customers in the      Middle East. |
| ·  | Diversified      Services: Included is our Marine Services Division, which primarily      finances marine vessels with Caterpillar engines for all countries; and      our offices in Latin America that serve local dealers and      customers.                                                                          |
| ·  | Asia-Pacific:      We have offices in Australia, New Zealand, China, Japan, South Korea and      Southeast Asia that serve local dealers and customers, as well as mining      customers worldwide.  This segment also provides project      financing in various countries.                                    |
| ·  | Cat      Power Finance: This segment primarily provides debt financing for      Caterpillar electrical power generation, gas compression and co-generation      systems, as well as non-Caterpillar equipment that is powered by      these systems, for allcountries.                                          |

| (Millions      of dollars)                                                                                                        |   |               |   |   |   |   |   |               |   |   |                       |   |   |                   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------|--------|--------|--------------------|--------|--------|----------------------------|--------|--------|------------------------|--------|--------|--------|--------|
| 2008                                                                                                                              |   | North America |   |   | Europe |   |   | Asia- Pacific |   |   | Diversified  Services |   |   | Cat      Power Finance |   |   | Total  |   |
| External      revenue                                                                                                             |   | $                  | 1,572  |   |   |   | 534    |               |   |   | 442                        |   |   |                   | 381    |   |   |   | 70 |   |   | $ | 2,999 |   |
| Inter-segment      revenue                                                                                                        |   | $                  | 93     |   |   |   | -      |               |   |   | -                          |   |   |                   | -      |   |   |   | - |   |   | $ | 93 |   |
| Profit                                                                                                                            |   | $                  | 132    |   |   |   | 85     |               |   |   | 75                         |   |   |                   | 80     |   |   |   | 13 |   |   | $ | 385 |   |
| Interest      expense                                                                                                             |   | $                  | 647    |   |   |   | 224    |               |   |   | 153                        |   |   |                   | 194    |   |   |   | 34 |   |   | $ | 1,252 |   |
| Depreciation      and amortization         expense                                                                      |   | $                  | 522    |   |   |   | 120    |               |   |   | 95                         |   |   |                   | 17     |   |   |   | 1 |   |   | $ | 755 |   |
| Provision      for income taxes                                                                                                   |   | $                  | 60     |   |   |   | (16    | )                  |   |   | 38                         |   |   |                   | 34     |   |   |   | 4 |   |   | $ | 120 |   |
| Assets      as of December 31,                                                                                                    |   | $                  | 21,272 |   |   |   | 5,877  |               |   |   | 5,106                      |   |   |                   | 5,413  |   |   |   | 1,195 |   |   | $ | 38,863 |   |
| Expenditures      for equipment   on      operating leasesand              for non-leased      equipment |   | $                  | 957    |   |   |   | 231    |               |   |   | 344                        |   |   |                   | 69     |   |   |   | 7 |   |   | $ | 1,608 |   |
|                                                                                                                              |   |               |   |   |   |   |   |               |   |   |                       |   |   |                   |   |   |   |   |   |   |   |   |   |   |

----

| (Millions      of dollars)                                                                                                              |   |         |   |   |   |   |   |         |   |   |                |   |   |                  |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------|--------|--------|--------------|--------|--------|---------------------|--------|--------|-----------------------|--------|--------|--------|--------|
| 2007                                                                                                                                    |   | NorthAmerica |   |   | Europe |   |   | Asia-Pacific |   |   | DiversifiedServices |   |   | Cat      PowerFinance |   |   | Total  |   |
| External      revenue                                                                                                                   |   | $            | 1,793  |   |   |   | 442    |         |   |   | 326                 |   |   |                  | 342    |   |   |   | 95 |   |   | $ | 2,998 |   |
| Inter-segment      revenue                                                                                                              |   | $            | 82     |   |   |   | -      |         |   |   | -                   |   |   |                  | -      |   |   |   | - |   |   | $ | 82 |   |
| Profit                                                                                                                                  |   | $            | 233    |   |   |   | 86     |         |   |   | 56                  |   |   |                  | 76     |   |   |   | 43 |   |   | $ | 494 |   |
| Interest      expense                                                                                                                   |   | $            | 730    |   |   |   | 156    |         |   |   | 125                 |   |   |                  | 173    |   |   |   | 30 |   |   | $ | 1,214 |   |
| Depreciation      and amortization         expense                                                                            |   | $            | 517    |   |   |   | 106    |         |   |   | 63                  |   |   |                  | 14     |   |   |   | 2 |   |   | $ | 702 |   |
| Provision      for income taxes                                                                                                         |   | $            | 146    |   |   |   | 14     |         |   |   | 32                  |   |   |                  | 32     |   |   |   | 10 |   |   | $ | 234 |   |
| Assets      as of December 31,                                                                                                          |   | $            | 18,513 |   |   |   | 6,273  |         |   |   | 3,607               |   |   |                  | 3,928  |   |   |   | 814 |   |   | $ | 33,135 |   |
| Expenditures      for equipment        on operating      leases and              for non-leased      equipment |   | $            | 907    |   |   |   | 269    |         |   |   | 117                 |   |   |                  | 71     |   |   |   | 2 |   |   | $ | 1,366 |   |
|                                                                                                                                    |   |         |   |   |   |   |   |         |   |   |                |   |   |                  |   |   |   |   |   |   |   |   |   |   |

| (Millions      of dollars)                                                                                                                    |   |                     |   |   |   |   |   |         |   |   |                |   |   |                  |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|--------|--------|--------|--------------|--------|--------|---------------------|--------|--------|-----------------------|--------|--------|--------|--------|
| 2006                                                                                                                                          |   | North       America |   |   | Europe |   |   | Asia-Pacific |   |   | DiversifiedServices |   |   | Cat      PowerFinance |   |   | Total  |   |
| External      revenue                                                                                                                         |   | $                        | 1,756  |   |   |   | 355    |         |   |   | 304                 |   |   |                  | 265    |   |   |   | 83 |   |   | $ | 2,763 |   |
| Inter-segment      revenue                                                                                                                    |   | $                        | 53     |   |   |   | -      |         |   |   | -                   |   |   |                  | -      |   |   |   | - |   |   | $ | 53 |   |
| Profit                                                                                                                                        |   | $                        | 268    |   |   |   | 78     |         |   |   | 58                  |   |   |                  | 45     |   |   |   | 24 |   |   | $ | 473 |   |
| Interest      expense                                                                                                                         |   | $                        | 690    |   |   |   | 99     |         |   |   | 118                 |   |   |                  | 141    |   |   |   | 34 |   |   | $ | 1,082 |   |
| Depreciation      and amortization         expense                                                                             |   | $                        | 488    |   |   |   | 91     |         |   |   | 63                  |   |   |                  | 10     |   |   |   | 2 |   |   | $ | 654 |   |
| Provision      for income taxes                                                                                                               |   | $                        | 146    |   |   |   | 24     |         |   |   | 19                  |   |   |                  | 18     |   |   |   | 8 |   |   | $ | 215 |   |
| Assets      as of December 31,                                                                                                                |   | $                        | 17,827 |   |   |   | 4,860  |         |   |   | 3,051               |   |   |                  | 3,114  |   |   |   | 926 |   |   | $ | 29,778 |   |
| Expenditures      for equipment         on operating      leases and              for non-leased      equipment |   | $                        | 818    |   |   |   | 155    |         |   |   | 87                  |   |   |                  | 89     |   |   |   | 3 |   |   | $ | 1,152 |   |
|                                                                                                                                          |   |                     |   |   |   |   |   |         |   |   |                |   |   |                  |   |   |   |   |   |   |   |   |   |   |

| (Millions      of dollars)                |   |  2008 |   |   |  2007 |   |   |  2006 |   |
|-------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| Interest      expense                     |   |       |   |   |       |   |   |       |   |
| Interest      expense from segments       |   | $          | 1,252  |   |       | $      | 1,214  |       |   | $ | 1,082 |   |
| Less:      Inter-segment Interest expense |   |       | (93    | )      |       |   | (82    | )          |   |   | (53 | ) |
|  Total                               |   | $          | 1,159  |   |       | $      | 1,132  |       |   | $ | 1,029 |   |
|                                      |   |       |   |   |       |   |   |       |   |   |   |   |

----

| (Millions      of dollars)            |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Assets                                |   |   |   |   |   |   |   |   |   |
| Assets      from segments             |   | $      | 38,863 |   |   | $      | 33,135 |   |   | $ | 29,778 |   |
| Less:      Investment in subsidiaries |   |   | (1,027 | )      |   |   | (1,011 | )      |   |   | (967 | ) |
| Less:      Inter-segment balances     |   |   | (4,754 | )      |   |   | (2,695 | )      |   |   | (1,475 | ) |
|  Total                           |   | $      | 33,082 |   |   | $      | 29,429 |   |   | $ | 27,336 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |

| (Millions      of dollars)                                                                                                      |   | 2008   |      |   | 2007   |   |      |  2006 |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|------------|--------|
| Revenue                                                                                                                         |   |   |      |   |   |   |      |       |   |
| Inside      U.S.                                                                                                                |   | $      | 1,632     |   |   | $      | 1,833     |       |   | $ | 1,831 |   |
| Inside      Canada                                                                                                              |   |   | 393       |   |   |   | 358       |       |   |   | 298 |   |
| Outside      U.S. and Canada                                                                                                    |   |   |  974 |   |   |   |  807 |       |   |   |  634 |   |
| Total                                                                                                                           |   | $      | 2,999     |   |   | $      | 2,998     |       |   | $ | 2,763 |   |
|                                                                                                                            |   |   |      |   |   |   |      |       |   |   |   |   |
| Equipment      on Operating Leases         and Non-Leased Equipment         (included in Other Assets), Net |   | 2008   |      |   | 2007   |   |      | 2006       |   |
| Inside      U.S.                                                                                                                |   | $      | 1,446     |   |   | $      | 1,453     |       |   | $ | 1,538 |   |
| Inside      Canada                                                                                                              |   |   | 820       |   |   |   | 901       |       |   |   | 603 |   |
| Outside      U.S. and Canada                                                                                                    |   |   | 876       |   |   |   |  763 |       |   |   |  563 |   |
| Total                                                                                                                           |   | $      | 3,142     |   |   | $      | 3,117     |       |   | $ | 2,704 |   |
|                                                                                                                            |   |   |      |   |   |   |      |       |   |   |   |   |

----

| (Millions      of dollars)   |   |          |   |   |           |   |   |          |   |   |
|------------------------------|--------|---------------|--------|--------|----------------|--------|--------|---------------|--------|--------|
|  2008         |   | First quarter |   |   | Second quarter |   |   | Third quarter |   |   | Fourth quarter |   |
| Total      revenues          |   | $             | 779    |   |           | $      | 785    |          |   | $      | 774 |   |   | $ | 661 |   |
| Profit      before taxes     |   | $             | 183    |   |           | $      | 176    |          |   | $      | 156 |   |   | $ | (10 | ) |
| Profit                       |   | $             | 124    |   |           | $      | 130    |          |   | $      | 118 |   |   | $ | 13 |   |
|                         |   |          |   |   |           |   |   |          |   |   |   |   |   |   |   |   |
|   2007   |   |          |   |   |           |   |   |          |   |   |   |   |   |   |   |   |
| Total      revenues          |   | $             | 713    |   |           | $      | 747    |          |   | $      | 758 |   |   | $ | 780 |   |
| Profit      before taxes     |   | $             | 182    |   |           | $      | 187    |          |   | $      | 187 |   |   | $ | 172 |   |
| Profit                       |   | $             | 125    |   |           | $      | 123    |          |   | $      | 133 |   |   | $ | 113 |   |
|                         |   |          |   |   |           |   |   |          |   |   |   |   |   |   |   |   |
|   2006   |   |          |   |   |           |   |   |          |   |   |   |   |   |   |   |   |
| Total      revenues          |   | $             | 657    |   |           | $      | 676    |          |   | $      | 723 |   |   | $ | 707 |   |
| Profit      before taxes     |   | $             | 173    |   |           | $      | 155    |          |   | $      | 192 |   |   | $ | 168 |   |
| Profit                       |   | $             | 118    |   |           | $      | 106    |          |   | $      | 132 |   |   | $ | 117 |   |
|                         |   |          |   |   |           |   |   |          |   |   |   |   |   |   |   |   |

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