Cummins to Supply Engines to PACCAR.

Business Editors

COLUMBUS, Ind.--(BUSINESS WIRE)--Feb. 12, 2001

Cummins Inc. (NYSE:CUM) announced today that it has entered into a long-term supply agreement with PACCAR Inc. (Nasdaq:PCAR) covering Cummins heavy-duty ISX, Signature, N14, ISM and ISL engine models.

In a separate agreement, Cummins became the supplier to PACCAR's European subsidiary, DAF Trucks, for medium-duty engines for the recently introduced DAF LF Series trucks.

"This supply agreement reflects the industry trend towards closer cooperation between OEMs and engine suppliers to provide enhancements to improve vehicle performance. The impact of 2002 emission regulations and the benefits to customers of providing a more integrated powertrain are key elements in the strategic alliance," said Joe Loughrey, Cummins Executive Vice President, President - Engine Business and Gary Moore, PACCAR Senior Vice President.

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 record 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.

PACCAR, a $7.9 billion company, is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, DAF and Foden nameplates. It also provides financial services and distributes truck parts related to its principal business. In addition, the Bellevue, Washington-based company manufactures winches under the Braden, Gearmatic and Carco nameplates.

PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR, and its homepage can be found at www.paccar.com.