Cummins Engine and American Standard announce joint venture to produce air compressors; Cummins turbocharger production to be moved to a different site in Southern Indiana; production workers to be transferred to other plants in state.

COLUMBUS, Ind.--(BUSINESS WIRE)--May 23, 1996--Cummins Engine Co. Inc. (NYSE:CUM) and American Standard Companies Inc. (NYSE:ASD) today announced their intention to form a manufacturing joint venture to produce air compressors designed by WABCO Automotive Products, a division of American Standard. Cummins' wholly owned subsidiary, Holset Engineering Inc., presently manufactures air compressors at Madison, Ind. In conjunction with this announcement, Holset announced that turbocharger production now performed at Madison will be moved to another Cummins plant in Southern Indiana, all production workers will be transferred to other Cummins plants in the state, and the Madison facility will be closed.

WABCO will be the managing partner of the joint venture, to be named WABCO Compressor Manufacturing Co. Air compressors produced by the joint venture will be sold to Cummins and to other customers as a key component of commercial vehicle braking and control systems. Under terms of the joint venture agreement, production of Holset air compressors will be moved from Madison to Charleston, S.C., with operations beginning in early 1997. By the end of 1997, the joint venture will begin production of WABCO air compressors.

Cummins Chairman and Chief Executive Officer James A. Henderson commented, "As part of the manufacturing strategy we developed recently, we determined that we should collaborate with an organization that has the technical capability and capacity to work with us to maximize our design integration and product development efforts, which are strategic to Cummins for air compressor systems. We are pleased that in WABCO, we have found an excellent technology partner to produce high-quality air compressors at a competitive cost."

American Standard Chairman, President and Chief Executive Officer Emmanuel A. Kampouris said, "For WABCO, this is an excellent opportunity to establish a manufacturing presence in support of our North American market."

Hourly production employees involved with Holset air compressor machining and assembly will be reassigned to other Cummins operations in Southern Indiana, the company said, and some of the salaried employees affiliated with this operation will be considered for positions by the new joint venture.

Since a large portion of the Madison plant will be empty once air compressor production is moved, Cummins said it plans to consolidate turbocharger production at another of its plants in Indiana, then close the Madison facility. The move is part of the company's restructuring program announced last October, Cummins said. Employees involved with turbocharger production will be transferred to other Cummins plants in Southern Indiana, and several of the salaried employees will be offered work elsewhere at Cummins. The plant will be closed by the second quarter of 1997, Cummins said.

"Our production workers at Madison are highly skilled and we anticipate they will do well in their new assignments elsewhere in Southern Indiana. The company appreciates the Madison community's support during the past 14 years and will work aggressively to find a new employer to occupy the plant as quickly as possible," said James E. Sweetnam, vice president and group managing director of Holset.

Cummins, headquartered in Columbus, Ind., U.S.A., is a leading worldwide designer and manufacturer of diesel engines and related products. These engines provide power for its key markets: automotive, power generation, industrial and filtration. Founded in 1919, Cummins has 24,300 employees at manufacturing facilities in more than a dozen countries. Cummins reported sales of $5.2 billion in 1995.

American Standard is the global, diversified manufacturer of Trane and American Standard air conditioning products, American Standard, Ideal Standard, and Porcher plumbing products and WABCO commercial and utility vehicle braking and controls systems. The company reported 1995 sales of $5.2 billion and employs approximately 43,000 persons worldwide.

CONTACT: Cummins Engine Co.

Ann C. Smith, 812/377-3524

or

American Standard

Phil Bradtmiller, 908/980-6038