27.01.2006 21:13:00

Cummins Expands Joint Venture in India to Boost Engine Production

Cummins Inc. (NYSE:CMI) and Tata Motors have signed anagreement that will allow their joint venture, Tata Cummins Ltd.(TCL), to begin manufacturing the popular ISB engine in the nearfuture.

The expansion will significantly increase the number of enginesproduced by the joint venture and will strengthen Cummins position asa leading producer of engines for the growing medium and heavy-dutycommercial vehicle market in India.

TCL currently produces approximately 69,000 Cummins B Seriesengines a year. Under the agreement, TCL will increase its totalengine production to 100,000 units within two years and 120,000 unitsthereafter. The engines produced by TCL will meet Euro 2, Euro 3 andEuro 4 Indian and European standards for diesel emissions.

The estimated $60 million needed for the expansion will be fundedby TCL's ongoing cash flow and joint venture debt.

TCL, formed in 1992, has been a successful joint venture betweenthe two companies and manufactures the Cummins B Series engines inIndia for use in trucks manufactured by Tata Motors (TML), as well assales by Cummins in India to other applications and OEMs.

TML is the largest truck producer in India, with a market share ofbetween 60 and 70 percent. The Cummins B Series engines power morethan half of those trucks. In addition, the B Series captured a 37percent share of the overall Indian medium and heavy commercialvehicle engine market in 2004.

Cummins, which has been doing business in India for more than 40 years, has 11 businesses in the country representing all operatingsegments of the Company. India is one of Cummins' largest andfastest-growing international markets.

About Cummins

Cummins Inc., a global power leader, is a corporation ofcomplementary business units that design, manufacture, distribute andservice engines and related technologies, including fuel systems,controls, air handling, filtration, emission solutions and electricalpower generation systems. Headquartered in Columbus, Indiana, (USA)Cummins serves customers in more than 160 countries through itsnetwork of 550 Company-owned and independent distributor facilitiesand more than 5,000 dealer locations. With more than 28,000 employeesworldwide, Cummins reported sales of $8.4 billion in 2004. Pressreleases can be found on the Web at www.cummins.com.

Future-looking statements disclosure

Information provided and statements in this release that are notpurely historical are forward-looking statements within the meaning ofthe Private Securities Litigation Reform Act of 1995, includingstatements regarding the company's expectations, hopes beliefs andintentions on strategies regarding the future. It is important to notethat the company's actual future results could differ materially fromthose projected in such forward-looking statements because of a numberof factors, including, but not limited to, general economic, businessand financing conditions, labor relations, governmental action,competitor pricing activity, expense volatility and other risksdetailed from time to time in Cummins Securities and ExchangeCommission filings.

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