Cummins Enters Into Joint Venture Agreement for China Technical Center.

COLUMBUS, Ind. -- Cummins Inc. (NYSE:CMI) has taken a significant step toward establishing its first technical center in China by signing a joint venture contract agreement with Dongfeng Cummins Engine Co. Ltd. (DCEC) for a facility that will open in the first quarter of 2006 in the central China city of Wuhan.

The Cummins East Asia Tech Center will provide engineering and technical services for the full range of Cummins products built in China, including diesel and natural gas engines, power generators, turbochargers and filtration products.

The center, a 55-45 joint venture between Cummins and DCEC, respectively, will become Cummins first technical center in China. DCEC is a 50-50 joint venture between Cummins and Dongfeng Automobile Co. Ltd.

The agreement expands the 18-year partnership between Cummins and Dongfeng in China that includes a joint venture engine plant in Xiangfan, which is Cummins second-largest manufacturing facility by volume, and a joint venture filtration plant, Shanghai Fleetguard.

"Cummins and Dongfeng have enjoyed a strong and successful partnership for many years, and the Cummins East Asia Tech Center will allow both companies to take even greater advantage of China's continued growth," said Cummins Chairman and Chief Executive Officer Tim Solso, who was in Wuhan to witness the signing ceremony as part of a weeklong visit to Cummins operations in China. "China is one of our most important international markets, and the creation of this technical center is crucial to our growth strategy in the country."

The agreement was signed by John Watkins, President of Cummins East Asia and Chairman and General Manager, Cummins China Investment Co. Ltd., and Zhu Fushou, General Manager of DFAC and Vice Chairman of DCEC with local and regional governmental officials in attendance. Cummins and DCEC will together make an initial investment of $10 million in 2005 to get the first phase of the center built and running.

"We are committed to our customers' and our partners' success," Watkins said. "This technical center will enable us to respond to their technical engineering and emissions requirements better, faster and cheaper."

"Today's signing is a further expansion of the 18-year fruitful and solid strategic relationship between DFM and Cummins," said Miao Wei, Chairman and Chief Executive Officer of Dongfeng Motor Company. "This will no doubt strengthen the competitiveness of our joint venture engine company, DCEC."

The center will be located in the Wuhan Economic and Technological Development Zone. Wuhan, the capital of Hubei Province, is the fourth largest city in China and is a leading industrial center. The city's central location, relative proximity to Dongfeng Cummins Engine Co. in Xiangfan and a strong local engineering talent pool were all factors in choosing Wuhan as the site for the technical center.

The center will provide product development, emissions testing, customer application engineering and more, allowing Cummins and DCEC to tailor and develop products for the China market. The center also would allow both companies to better support future emissions standards for engines produced in China.

Cummins is the largest foreign investor in the China diesel engine industry, and its ties in the country date back nearly 30 years to 1975 when then-CEO J. Irwin Miller led the first Cummins delegation to China as part of a deal to sell 14 KV12 engines to a mining customer. Cummins began licensing its engine technology in China in 1981 and formed its first joint venture in the country in 1995. Today, Cummins operates 20 facilities in China - including six manufacturing sites - with all areas of the Company's business represented in China.

Cummins sales in China will exceed $1 billion this year, representing nearly 10 percent of Cummins total consolidated and unconsolidated revenue.

"China is one of the fastest-growing economies in the world, and we're well-positioned to take advantage of the expected future growth in key sectors such as commercial vehicles and construction," Solso said. "With the help of terrific partners such as Dongfeng, we have worked hard to integrate our company into the Chinese economy and culture, and we're excited about the future - both for Cummins and for China."

About Dongfeng Motor Company

Dongfeng Motor Company (DFM) was founded in 1969 and is one of the three largest automakers in China. DFM employs more than 112,000 people and reported sales of more than $9.5 billion in 2003.

About Dongfeng Automobile Company Ltd.

DFAC is a subsidiary of Dongfeng Motor Co. founded in 1999. It has automobile, diesel engine, casting and sales divisions, in addition to owning a 50 percent stake in Dongfeng Cummins Engine Co.

About Cummins Inc.

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 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.