Cummins Comments on EPA's Proposed Rule on Nonconformance Penalties.

Business Editors

COLUMBUS, Ind.--(BUSINESS WIRE)--Jan. 14, 2002

Confident In Ability To Meet 2.5-Gram Nox+NMHC Standard While

Providing Customers With The Best Possible Performance and Fuel

Economy At The Lowest Cost

Today Cummins Inc. (NYSE:CUM) affirmed, following the release of the Environmental Protection Agency's (EPA) proposed rule on nonconformance penalties, that it is ready to meet the terms of its consent decree with the EPA, and will not be affected by nonconformance penalties. The penalties, as proposed, are intended to discourage non-compliance.

In 1998, a group of manufacturers of heavy-duty diesel engines (including Cummins) signed a consent decree with the EPA and Department of Justice. At that time, engine manufacturers made a commitment to meet the 2.5-gram NOx+NMHC standards by October 2002, as part of a "pull-ahead provision." The nonconformance penalties announced by the EPA will apply to the pull-ahead provision; meaning that engines which do not meet the standard by October 2002 will be assessed the nonconformance penalty proposed in this rule.

"Cummins did not enter into this consent decree lightly," said Joe Loughrey, Cummins Executive Vice President and President, Engine Business. "Cummins made a significant investment in technology and product development to meet, on time, the requirements of the consent decree."

"We are confident in our ability to offer a product line that will fulfill our commitment to meet the 2.5-gram NOx+NMHC standard and provide our customers with the best possible performance and fuel economy at the lowest cost. We understand and appreciate the challenges facing many trucking companies and owner-operators today and believe we have achieved the balance between the needs of our customers and our commitment to clean air," Loughrey added.

Cummins, headquartered in Columbus, IN, is the world's largest producer of commercial diesel engines above 50 horsepower. The company provides products and services for customers in markets worldwide for engines, power generation and filtration. Cummins reported sales of $6.6 billion in 2000. Press releases by fax may be requested by calling New on Demand (toll free) at 888-329-2305. Cummins home page on the internet can be found at http://www.cummins.com.