Cummins Affirms Plans to Meet Tier 4 Off-Road EPA Regulations.

Business Editors

COLUMBUS, Ind.--(BUSINESS WIRE)--May 11, 2004

Cummins Inc. (NYSE:CMI) today affirmed its plans to meet the Tier 4 off-road diesel emissions rule, signed today by EPA Administrator Mike Leavitt, and scheduled to take effect beginning in 2008.

To achieve the stringent 90 percent reduction in emissions required by the new rule will demand highly innovative solutions to achieve cleaner engine combustion aligned with high-efficiency after treatment. However, Cummins is uniquely placed to meet the Tier 4 emissions challenge, with the capability to develop fully integrated engine and emission reduction systems as a single, complete package.

With key technologies such as fuel systems, electronics, turbocharging, filtration and exhaust emission reduction systems all vertically integrated within Cummins Inc. No other engine company has access to such a broad range of in-house expertise or technology options to meet Tier 4.

Significantly, Cummins Tier 4 technology solutions will be applied to the latest industrial engine platform range announced for Tier 3 emission regulations, commencing January 2005. This engine platform commonality will offer OEMs a significant advantage by minimizing installation changes through 2014 and beyond.

"The Tier 4 rule signed today represents an important milestone in the diesel engine and equipment industry," said Christine Vujovich, Vice President - Marketing and Environmental Policy. "The EPA is moving the industry in the right direction to make a major contribution to reach national clean air goals and improve public health - and Cummins will be at the forefront of that process. We are fully committed to meet the challenge presented by Tier 4 and will be ready with the engine technology when it is needed."

The EPA's new emissions rule will be phased on different dates related to engine power bands, requiring varying levels of emissions reduction. Engines rated below 49 horsepower will need to comply by 2008. The most severe emission reduction levels will apply to engines rated over 50 horsepower beginning 2011 with Tier 4 Interim, followed by Tier 4 Final beginning 2014. This will reduce NOx (nitrogen oxides) and PM (particulate matter) emissions by over 90 percent. The regulations cover all diesel-powered construction, agricultural, mining and other off-road machinery.

A key part of the Tier 4 rule is the regulated reduction of sulfur content in off-road diesel fuel from over 3,000 parts per million (ppm) to first 500 ppm and then 15 ppm just ahead of the Interim and Final engine emissions effect dates. This will make it possible for engine emissions solutions to comply with the new EPA standards.

Of similar significance is the scheduling of the Tier 4 emission effect dates. As one of the largest suppliers of off-road diesel engines, Cummins will be able to utilize the available time to address the added complexity of working with many hundreds of OEM customers and equipment types. The availability of proprietary Cummins software such as PowerMatch and Advisor will help ensure a faster and more effective specification and installation process for these customers.

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves its customers through more than 680 company-owned and independent distributor locations in 137 countries and territories. Cummins also provides service through a dealer network of more than 5,000 facilities in 197 countries and territories. With more than 24,000 employees worldwide, Cummins reported sales of $6.3 billion in 2003. Press releases can be found by accessing the Cummins home page at www.cummins.com.