Cummins Pays $225 Million, Seven-Year Notes; Lowers Debt/Capital Ratio

COLUMBUS, Ind.--March 4, 2005; Cummins Inc. announced today that it has paid $225 million in seven-year notes issued in 1998 from available cash. The notes, which carried an interest rate of 6.45 percent, matured on March 1, the date the payment was made.

As a result of the payment, Cummins debt-to-capital ratio will fall by approximately three percentage points from where it stood at the end of 2004. The payment is another significant step toward the Company achieving investment grade financial metrics. Currently, Cummins debt is rated at Ba2 by Moody's and BB+ by Standard & Poor's.

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 sales of $8.4 billion in 2004. Press releases can be found on the Web at www.cummins.com.