Cummins Receives State Grant to Improve Jobs Skills for Indiana Workers.

Business Editors

COLUMBUS, Ind.--(BUSINESS WIRE)--Feb. 11, 2004

Cummins Inc. (NYSE:CMI) announced today that it has been awarded a $350,000 grant from the Indiana Department of Commerce to train workers at the Cummins Technical Center in Columbus.

The award, which will cover a two-year period, comes from the state's Skills Enhancement Fund under which certain types of companies can receive up to $200,000 a year to train their workforces to meet the challenges of the changing economy.

Indiana Gov. Joe Kernan announced the grant this afternoon during a ceremony at the Cummins Technical Center. Cummins Chief Technical Officer John Wall accepted the grant on behalf of the Company.

"We're extremely proud and appreciative that the state has validated our efforts to keep Cummins employees among the most skilled in their fields," Wall said. "A central part of the Cummins mission is to find ways to empower our employees to act like owners, and we're committed to giving them the support they need to improve their skills on the job.

"This grant comprises just a portion of that commitment."

The grant will be used to help exempt and Cummins Office Union employees at the Cummins Technical Center (CTC) adopt a team-based work system, training for which began in the second half of 2003.

As part of its skills enhancement effort, the Company also will provide "train the trainer" education for about 50 Cummins team developers, and Six Sigma and Design for Six Sigma training to about 300 CTC workers over the next two years.

The training will be designed to enhance both the "quality skills" (those that help workers make improvements to the product or the production process) and the "transferable skills" (general knowledge, employability and workplace flexibility) of the workers at CTC.

Cummins has committed to making a $7 million capital investment in the CTC over the next two years and will invest nearly $2 million in skills training for its employees at the site. Approximately 940 people work at the CTC, among the nearly 4,800 Cummins workers in southern Indiana.

"Cummins is an outstanding Indiana company, and this is just the latest in a long line of steps they've taken to reinforce their commitment to our state and its workforce," said Kernan. "Today's grant will help ensure that the company remains competitive in the future. We appreciate Cummins' ongoing efforts to improve the skills of its workers."

Indiana's Skills Enhancement Fund is designed to provide financial assistance to existing, new and expanding businesses committed to training their workforces. By state law, companies that receive SEF grants must commit to continue operations at the locations where the assistance is provided for at least five years.

Manufacturing companies, distribution centers and regional headquarters are all eligible for SEF grant consideration. In 2003, the Commerce Department awarded more than $17 million in SEF grants that provided training for more than 52,000 Indiana workers. The grants also helped leverage more than $2.9 billion in private investment, more than tripling the investment dollars from the previous year.

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. 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.