Cummins to Produce High-Performance, Light-Duty Diesel Engines; Company to Partner with Major Automotive Manufacturer

Cummins Inc. (NYSE:CMI) today announced it has reachedagreement with a major automotive manufacturer serving the NorthAmerican market to produce and market a light-duty, diesel-poweredengine. For competitive reasons, Cummins' original equipmentmanufacturer partner in the venture has asked to remain confidential.

As part of the agreement, Cummins will develop and manufacture afamily of high-performance, light-duty diesel engines for a variety ofautomotive applications in vehicles below 8,500 pounds gross vehicleweight, including standard pickup trucks and sport utility vehicles.Certain bus, marine and industrial applications also will be served bythis engine family.

The first vehicles with this engine are expected to be ready formarket by the end of the decade. Cummins anticipates that this dieselengine will provide an average of 30 percent fuel savings, dependingon the drive cycle, over gasoline-powered engines for comparablevehicles.

The concept for this product is the result of a nine-yearpartnership between Cummins and the U. S. Department of Energy. TheDOE contract began in 1997 because of the federal agency's ongoinginterest in energy efficiency in the automotive market.

"This agreement gives the driving public an even greateropportunity to experience the benefits of a new class of vehiclespowered by a high-performance, fuel-efficient, clean diesel enginemade by Cummins," said Tim Solso, Cummins Chairman and Chief ExecutiveOfficer. "This line of diesel engines also will fuel the growth of anexciting new market in which Cummins does not currently participate."

Cummins has not yet selected a manufacturing site for the newengine, but after an extensive search has narrowed the candidates to ashort list of states.

"Cummins is looking for a community that has a cost-competitive,suitable facility and the right resources available," said Jim Kelly,President of the Engine Business. "We also will seek state and localeconomic incentives from the states that are candidates for thisbusiness."

Cummins expects to have added 600 new jobs approximately two yearsafter product launch. Further growth will depend on volumes.

About Cummins

Cummins Inc., a global power leader, is a corporation ofcomplementary business units that design, manufacture, distribute andservice engines and related technologies, including fuel systems,controls, air handling, filtration, emission solutions and electricalpower generation systems. Headquartered in Columbus, Indiana, (USA)Cummins serves customers in more than 160 countries through itsnetwork of 550 Company-owned and independent distributor facilitiesand more than 5,000 dealer locations. Cummins reported net income of$550 million on sales of $9.9 billion in 2005. Press releases can befound on the Web at www.cummins.com

Forward-looking statements disclosure

Information provided and statements in this release that are notpurely historical are forward-looking statements within the meaning ofthe Private Securities Litigation Reform Act of 1995, includingstatements regarding the company's expectations, hopes, beliefs andintentions on strategies regarding the future. It is important to notethat the company's actual future results could differ materially fromthose projected in such forward-looking statements because of a numberof factors, including, but not limited to, general economic, businessand financing conditions, labor relations, governmental action,competitor pricing activity, expense volatility and other risksdetailed from time to time in Cummins Securities and ExchangeCommission filings.