Cummins to Expand Presence in Downtown Columbus by 500 Workers.

- Company to Lease Office Space as Part of Commons Mall Redevelopment Project -

COLUMBUS, Ind. -- Cummins Inc. (NYSE: CMI) today announced that it will add approximately 500 professional employees, many of them engineers, in Columbus over the next two years, and has agreed to lease an office building being built as part of the Commons Mall redevelopment project to meet the expected growth.

The four-story, 100,000 square foot building is scheduled to be completed late in the first quarter of 2009. The project also includes a parking garage for Cummins employees to be built on property just southwest of the office building.

"We are pleased to be able to further strengthen our commitment to Columbus and the state of Indiana by bringing new, well-paying jobs to the region," said Cummins President and Chief Operating Officer Joe Loughrey. "As a large and growing employer in the city, we have a significant stake in helping Columbus remain a vibrant community. This project, along with the other initiatives outlined as part of the city's Vision 2020 plan, is a big step in that direction."

The announcement was made this afternoon at Columbus City Hall. In addition to Loughrey, Indiana Lt. Gov. Becky Skillman, Columbus Mayor Fred Armstrong, project developer Tim Dora, representatives of the City of Lawrenceburg Regional Economic Development Fund and members of the staffs of U.S. Representatives Baron Hill and Mike Pence were among those in attendance.

"Last year 600 new production jobs, this year 500 new professional jobs. We're proud of Cummins and the growth the company is bringing to south central Indiana," said Governor Mitch Daniels.

Cummins currently has approximately 5,500 employees in Columbus, along with an additional 900 contract workers. The new space, two blocks from the Company's headquarters, will allow Cummins to consolidate its employees in fewer locations in the city and make room for new workers expected as part of Cummins' growth plans.

The office space is part of a larger redevelopment project on the site of the Commons Mall by Dora Brothers Hospitality Corp. When complete, the project - which will result in demolition of much of the mall - also will include a new hotel, conference center and additional retail locations. Dora Brothers is nearing completion on another hotel in downtown Columbus - Hotel Indigo.

"Today's exciting announcement is another example of the revitalization of downtown Columbus and the success of our Vision 2020 plan," said Columbus Mayor Fred Armstrong. "Cummins continues to be a major driver of our success as a community, and we are thrilled with the Company's latest commitment to the city."

The ability to provide sufficient parking for Cummins employees was a significant factor in the Company's decision to locate the office building in downtown Columbus. The garage is expected to cost approximately $8 million, with the city of Columbus paying $4 million of the cost and the City of Lawrenceburg Regional Economic Development Fund providing a $3 million grant for the project.

"The City of Lawrenceburg and our Regional Economic Development Grant Committee is pleased to be able to assist our regional neighbors in expanding the commercial and industrial environment here in Columbus," said Lawrenceburg Mayor William Cunningham. "It is our hope that with investments such as ours, Indiana will maintain, and improve, its reputation as a Midwestern economic powerhouse."

At the request of Cummins, the Indiana Economic Development Corporation agreed to provide the City of Columbus a $1 million grant to assist in the cost of the infrastructure improvements associated with the new project.

Today's announcement builds on Cummins' recent growth in the Columbus area, including the decision to locate the Company's new light-duty diesel program at the Columbus Engine Plant. That program is expected to result in at least 600 new jobs by the end of the decade.

"Cummins is such an integral part of the Columbus community," said Rep. Hill. "And, these new jobs will further enrich this community from all aspects. I am very pleased with Cummins' efforts to continue bringing high-quality jobs to the region."

"For generations, for thousands of Hoosier families Cummins is Columbus," added Rep. Pence. "Today's announcement shows yet again that Cummins believes in this community and this state. The Cummins brand is all about dependability, hard work and integrity--all values that are synonymous with the Columbus community."

About Cummins

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 customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $715 million on sales of $11.4 billion in 2006. Press releases can be found on the Web at www.cummins.com.

Information provided in this release that is not purely historical constitutes 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.