Cummins Confirms Earnings Guidance, Reports Positive Order Trends.

Business Editors

COLUMBUS, Ind.--(BUSINESS WIRE)--Feb. 27, 2004

Cummins Inc. (NYSE:CMI) Chairman and Chief Executive Officer Tim Solso today confirmed the Company's first-quarter earnings guidance at the high end of the estimated range. Solso's remarks came during a Cummins investors conference in New York City.

The Company has estimated it will earn between 40 and 50 cents a share in the first quarter and between $3.20 and $3.40 a share for all of 2004. In reiterating those figures today, Solso noted that order rates have been strong so far in the first quarter.

"While the recent improvements in order trends give the Company reason to be optimistic about a broad market recovery, the markets remain volatile and the economic recovery is in its early stages," Solso said. "Should that strength continue, we may revisit our earnings guidance at a later time."

Solso told a group of more than 100 investors and analysts today that Cummins is delivering on its commitments to provide the right products for all its customers, and the Company has improved its cost structure.

He also pointed to the Company's complementary business units as being central to Cummins success. The Company benefits from strong relationships with its customers and joint venture partners; common technologies; a global distribution network and synergies enjoyed from a number of shared services, he said.

Cummins sales rose 8 percent in 2003 to $6.3 billion, and Solso told attendees at the conference to expect a larger percentage increase in 2004. Cummins is No. 1 or No. 2 in most of the markets in which it competes, and its well-established presence in high-growth countries such as China and India also position the Company well for future growth in those areas, he said.

In 2003, nearly half of the Company's sales were generated outside the United States.

"Cummins management and all of our 24,000 employees have worked extremely hard over the past three years to position the Company for the economic recovery," Solso said. "Now that we are seeing concrete signs that the economy is improving, all of us are dedicated to continuing the hard work necessary to make sure we deliver results for our customers and shareholders."

Solso's presentation highlighted a half-day investors conference that also featured presentations from members of Cummins top management team, representing all parts of the business. The conference was webcast live on the "Investor Information" portion of the Company's web site, www.cummins.com, and an archived version will be available on the site late this afternoon.

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.

Information provided and statements on the webcast and 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.