Cummins Chairman and CEO Shares Positive Company Outlook at Annual Shareholders' Meeting; Shareholders Also Select Auditor, Elect Eight Directors.

COLUMBUS, Ind. -- Cummins (NYSE:CMI) Chairman and Chief Executive Officer Tim Solso reviewed the Company's record performance in 2004 and outlined opportunities for future growth at the annual shareholders' meeting held today at the Cummins Technical Center.

Shareholders also elected the proposed slate of eight Company Directors to one-year terms, ratified the selection of PricewaterhouseCoopers LLP as the Company's auditor for 2005 and defeated a shareholder proposal regarding Cummins business practices in the People's Republic of China.

Solso, speaking in front of shareholders, employees and directors, recapped the Company's 2004 performance, which included record consolidated revenues of $8.4 billion and net income of $350 million. He also noted that Cummins produced more than 700,000 engines worldwide in 2004, a record for the Company, with just more than half of that total being produced outside the United States for international markets.

Solso told shareholders that the Company continues to see strength across all its markets in 2005 and that Cummins has a leading and growing presence in major international markets such as China and India. Solso also reaffirmed the Company's previously issued 2005 earnings guidance of $9 to $9.20 a share.

"I am as excited as I have ever been about the prospects for Cummins future," Solso said. "Our employees have worked hard to put the Company in a position to take advantage of the market recovery and we're executing our business strategy well.

"With our proven products and technologies, global presence and skilled workforce we are extremely well-positioned to succeed in our markets around the world."

Solso highlighted a number of drivers to Cummins expected strong performance, including:

--Cummins strong partnership with DaimlerChrysler. Cummins is the exclusive supplier of diesel engines for the Dodge Ram pickup truck, with shipments in 2004 of about 154,000 engines produced at the Company's MidRange Engine Plant in Walesboro, Ind. Solso said 2005 sales to DaimlerChrysler are expected to exceed last year's record volume, aided by the introduction of Dodge's new "Megacab" Ram later this summer.

--The continued strength of Cummins in key international markets, especially China. Cummins, which this summer is celebrating the 30th anniversary of former Chairman J. Irwin Miller's first business trip to China, reported more than $1 billion in consolidated and unconsolidated sales in China in 2004. The Company's engine plant joint venture with Dongfeng Automobile Company, reported sales of $554 million in 2004 - up from $63 million in 2001.

--Continued improvement in the Company's Power Generation and worldwide distribution network. Power Generation has rebounded from its worst recession ever, returning to profitability in 2004 and is poised for even better returns in 2005, Solso said.

The Company's worldwide distribution network serves customers in more than 160 countries and territories. Cummins recently consolidated the management of its former International Distributor business with the North American distributors to create its new Worldwide Distribution Business. The combined group is expected to share best practices from its operations around the world and operate more efficiently, allowing Cummins to benefit even more from this growing business, Solso said.

--Cummins work to become a low-cost producer through efforts such as Six Sigma, global sourcing, lean manufacturing and improved technical productivity.

Solso also stressed Cummins leadership position in emission technology and said the Company is on pace to meet the stringent 2007 U.S. EPA emission standards with proven technology. Cummins met the 2002 regulations on time, avoiding non-conformance penalties paid by some of its key competitors.

Auditors, board members selected; shareholder proposal defeated

In the business portion of the meeting, Cummins shareholders ratified PricewaterhouseCoopers LLP and elected eight directors to the Board for one-year terms. All the directors currently serve on the Board at Cummins. They are:

--Tim Solso, Chairman and Chief Executive Officer (first elected to the board in 1994)

--Robert J. Darnall, Retired Chairman and CEO, Inland Steel (1989)

--John M. Deutch, Institute Professor, Massachusetts Institute of Technology (1997)

--Alexis M. Herman, Chairman and CEO, New Ventures Inc. (2001)

--William I. Miller, Chairman, Irwin Management Corp. (1989)

--Georgia R. Nelson, President, Midwest Generation EME (2004)

--Carl Ware, Retired Executive Vice President Coca-Cola Co. (2004)

--J. Lawrence Wilson, Retired Chairman and CEO, Rohm and Haas Co. (1990).

Solso also recognized the contributions of William D. Ruckelshaus, who retired from the Board effective today after 30 years of service.

Shareholders voted down a proposal by Harrington Investments of Napa, Calif., under which Cummins would have adhered to a series of labor practices in the People's Republic of China. In recommending a "no" vote on the proposal, the board said Cummins already had comprehensive principles, policies and management practices in place to safeguard workers in China and around the world. Cummins has long been recognized as a leading employer in countries in which it operates and this year was named the top corporate citizen by Business Ethics magazine.

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 customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. With more than 28,000 employees worldwide, Cummins reported sales of $8.4 billion in 2004. Press releases can be found on the Web at www.cummins.com.

Information provided 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.