Joe Loughrey Named President and COO of Cummins Inc.; Restructuring Builds on Current Success, Positions Company for Future Growth.

COLUMBUS, Ind. -- Joe Loughrey has been named President and Chief Operating Officer of Cummins Inc. (NYSE:CMI), the Company announced today. Loughrey has been with Cummins for 31 years during which time he has held a number of leadership positions.

Loughrey's move to the position of President is part of a strategic reorganization designed to further promote execution and growth among Cummins businesses.

"Coming off a record year in 2004 and an outstanding first quarter in 2005, Cummins is not content to rest on its recent successes," said Tim Solso, Cummins Chairman and CEO. "We are restructuring critical elements of the Company to help us better execute our plans, grow faster - especially in developing markets - capture more synergies between businesses and generate more profit for shareholders."

Succeeding Loughrey as President of the Engine Business will be Jim Kelly who has served as Vice President and General Manager of Cummins MidRange and Heavy Duty Engine Businesses.

The Company also announced that Rick Mills will become President of the new Components Group. Mills has led Cummins Filtration Business since 2000.

Rich Freeland will become President - Worldwide Distribution Business, which combines Cummins International and North American distributors under one organization.

Steve Chapman, who has served as President of the International Distributor Business, will become Group Vice President - Emerging Markets and Businesses. He will assume an expanded role in growth markets, such as China, India and Russia, as well as Corporate Business Development.

In addition, Tom Linebarger, President of Cummins Power Generation, and Jean Blackwell, Chief Financial Officer, have been named Executive Vice Presidents. They also will serve as members of the Executive Committee along with Solso, Loughrey and Mark Gerstle, Vice President - Corporate Quality and Chief Risk Officer.

Loughrey's Focus is on People and Profitability

Prior to becoming President of the Engine Business in October 1999, Loughrey served in a variety of leadership roles in Cummins, including Executive Vice President - Industrial Business, Chief Technical Officer and Group Vice President - Worldwide Operations.

During his tenure, the Engine Business recorded its highest level of sales and earnings and substantially reduced the break-even level for the heavy-duty engine portion of the Engine Business. In addition, the success of Cummins emission-compliant engines has helped it capture market share from competitors in various markets.

"Joe was instrumental in turning the Engine Business into a high-performance organization focused on driving profitability to the bottom line," Solso said. "He is a thoughtful and thorough individual with a passion for this business and the people in it. These qualities will serve him and Cummins well in his new role."

Kelly Selected as Engine Business President

Kelly joined Cummins in 1976, and previously was plant manager of the Charleston, Jamestown and Columbus Engine Plant facilities. He led the Industrial Marketing and MidRange businesses before assuming his current position last year.

In his new role, Kelly will have responsibility for engineering, manufacturing, purchasing, sales and marketing for all engine families and markets worldwide.

"Our opportunities for growth are very exciting and in that kind of environment you want a seasoned, but innovative, individual in charge," Solso said. "Jim's broad experience and the role he played in developing our business with Chrysler make him an excellent choice to lead the Engine Business."

Mills Heads New Components Group

As President of the Components Group, Rick Mills will assume responsibility for the following Cummins businesses: Fleetguard/Nelson, Emission Solutions, Holset Engineering Co. and Fuel Systems.

Mills joined Cummins in 1970 and has served as the Corporate Controller. He was named to lead the Filtration Business and to be President of Fleetguard in 2000.

"The four businesses that Rick will lead are a vital part of our diversification effort and are helping us achieve our strategic initiative of growing the more stable and less cyclical parts of our business," Solso said.

Freeland Leads New Worldwide Distribution Business

Rich Freeland, who has been Vice President and General Manager - PowerCare and North American Distribution, joined Cummins in 1979 and has served as Vice President of Heavy-Duty Operations, Fuel Systems and Purchasing.

Freeland will manage the Company's wholly- and majority-owned distributors, have oversight of distributor joint ventures where Cummins has a minority share and drive distribution channel management worldwide.

"As our distribution businesses around the world continue to grow and contribute to the bottom line, it makes sense to combine the International and North American distributors under one organization," Solso said. "Again, this is an opportunity to grow our less cyclical and less capital intensive businesses. It also allows us to be more efficient in growing our parts and service business and in providing outstanding customer support."

Chapman Named Group Vice President - Emerging Markets and Businesses

Steve Chapman will use his broad international experience and entrepreneurial instincts to speed the growth of Cummins businesses in China, India, Russia and other emerging markets. He will also have oversight of a number of other ventures and projects as well as responsibility for overall corporate Business Development.

"Steve was instrumental in developing the unique competitive position we have in China today," Solso said. "He has a deep understanding of the countries and cultures in which we expect to experience some of our greatest future growth. We would not be where we are in China today without the contributions of Steve and his team."

"Although we have a long history in China and India, we need to expand and take advantage of our leadership position. We are excited about the potential that exists in these and other emerging markets to grow our sales quickly and profitably," Solso added.

Chapman joined Cummins in 1985 and has been heavily involved in international business development, particularly in the Asian markets and global distribution.

All changes as a result of the reorganization are effective immediately.

"I am very excited about this new organization, which we are creating from a position of record strength. I am confident that these changes will allow us to execute even better and lead to faster growth and a greater return for our shareholders," Solso said.

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. With more than 28,000 employees worldwide, Cummins reported sales of $8.4 billion in 2004. Press releases can be found on the Web at www.cummins.com.

Information provided and statements in 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.