Cummins Inc. Makes Investment in Innovative Seattle-Based Public-Private Partnership to Demonstrate the Ability to Retrofit Existing Diesel Fleets to Improve Emissions.

Business Editors

COLUMBUS, Ind.--(BUSINESS WIRE)--July 10, 2001

Aftertreatment System Reduces Particulate

Emissions 90% From Current Levels

Cummins Inc. (NYSE:CUM) announced today that it is making an investment of $400,000 to help underwrite an innovative public-private partnership, the Seattle Diesel Solutions Program, designed to demonstrate the ability to retrofit existing fleets of diesel engines to improve emissions.

When fully operational, the aftertreatment system used in Seattle municipal fleets will result in particulate emissions reductions of near 90% from current levels. There are over 800 Cummins engines in the Seattle Metro fleet alone.

"This is a great example of where advances in technology can be applied to older engines -- and together with innovative public-private thinking -- produce a cleaner, healthier and safer environment," said Christine Vujovich, Vice President - Environmental Policy. "Diesel engines, with their superior fuel economy and durability, are at the heart of long-lived metro fleets such as this one. As such, we believe there is a significant market in retrofitting existing fleets. We are pleased to make an investment in this program, along with other businesses and agencies, who are also dedicated to protecting the environment."

Cummins distributor, Cummins Northwest, together with Cummins wholly owned subsidiary, Nelson, have been instrumental in specifying and packaging the soot filters. Cummins Northwest joins other partners in the Seattle Diesel Solutions Program including: the Boeing Company, Tosco Refining, USEPA, the Puget Sound Clean Air Agency, the City of Seattle, King County, the Manufacturers of Emissions Controls Association and the Diesel Technology Forum.

Cummins has consistently led in the development of diesel and natural gas technology that provides lower emission products while at the same time providing its customers with the best life-cycle operating costs. In March 2001, Cummins announced that it had achieved an important milestone in the development of cooled exhaust gas recirculation (EGR) technology, which the company believes is the only feasible technology for meeting the tough October 2002 new engine emission requirements. Using the technology, Cummins achieved a two- percent improvement in fuel economy in its midrange engines compared to its current product, and reduced NOx emissions by 50 percent. Recently, Cummins completed a joint venture agreement with Westport Innovations that focuses on the development and sale of high performance natural gas engines for vehicular and stationary engine markets.

Since 1974, Cummins has lowered the NOx emissions for on-highway trucks by over 75%, and particulate matter (PM) emissions by over 90%, and is demonstrating new technology that will be required for future emissions regulations. More information on Cummins environmental leadership can be found in the Cummins 2000 Environmental Annual Report, available at http://www.cummins.com/na/pdf/en/whoweare/environment/enviro_2000.pdf.

Cummins, headquartered in Columbus, Ind., 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 News on Demand (toll free) at 888-329-2305. Cummins' home page on the Internet can be found at http://www.cummins.com.

This project is being undertaken pursuant to an agreement with the United States Environmental Protection Agency in connection with a settlement of disputed claims in an enforcement action under the Clean Air Act.