Cummins Announces Intention to Retire Upcoming Debt Maturity with Available Cash.

Business Editors

COLUMBUS, Ind.--(BUSINESS WIRE)--May 14, 2004

Cummins Inc. (NYSE:CMI) today said it expects to repay its $225 million of Notes due March 2005 with available cash and, if necessary, through the use of existing short-term credit facilities.

The Company anticipates strong cash flow generation in 2004 and beyond as a result of increased sales demand in nearly all of its end markets and an improved earnings outlook.

"We are pleased and optimistic about the ongoing strength of our business and believe we will generate significant cash to retire this debt," said Tim Solso, Cummins Chairman and Chief Executive Officer. "By retiring this debt we will make solid progress toward our stated goal of achieving the metrics needed to return to investment grade."

Standard & Poor's Ratings Services recently raised its outlook on Cummins to stable, citing the Company's improving operating performance and recovering industry fundamentals that should result in stronger earnings and cash generation.

"We will continue to monitor our performance and cash position as we move closer to the maturity date, " added Solso, "but at this point we feel very confident."

About Cummins Inc.

Cummins Inc., a global power leader with headquarters in Columbus, Indiana (USA), 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 worldwide. 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.

Forward Looking Statement Disclosure

Information provided and statements in this release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the Company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time-to-time in Cummins Securities and Exchange Commission filings.