Cleaire Division of Cummins West Awarded EPA Grant to Provide Emission-Reducing Technologies in California

COLUMBUS, Ind.--Aug. 2, 20053, 2005--Cleaire Advanced Emission Controls, a division of Cummins West Inc., is part of a team that has received a $211,000 grant from the Environmental Protection Agency for a demonstration project designed to lower emissions on heavy construction equipment in California.

The team also includes the West Coast Diesel Emission Reduction Collaborative and the Sacramento Metropolitan Air Quality Management District. Cleaire will be the technology provider for the project and also has committed to providing $760,000 in funding for the effort.

The award is the first of a series of EPA grants totaling $1.4 million for projects aimed at reducing diesel emissions in California, Oregon and Washington. The grants will leverage another $5.8 million in matching funds from private businesses and local government agencies.

Together, the partners on this project will retrofit five pieces of heavy construction equipment with emission-reduction technology and then evaluate the ability of the technology to lower emissions of particulate matter (PM), nitrogen oxides (NOx), hydrocarbons and carbon monoxide.

The construction equipment being retrofitted includes backhoes, loaders and excavators, which will have their old mufflers replaced with the advanced catalytic and filtration technology made by Cleaire. The retrofit equipment is expected to reduce PM emissions by more than 85 percent, NOx emissions by up to 25 percent, and carbon monoxide and hydrocarbon emissions by up to 90 percent.

California's construction sector is among the largest sources of diesel particulate matter (PM), or soot, in the state, accounting for nearly 30 percent of all PM emissions. The microscopic PM has been labeled as a toxic air contaminant by the California Air Resources Board (CARB), and has been linked to a number of respiratory illnesses.

"We are very pleased to have been selected as the technology partner for this EPA-funded construction retrofit project," said Kevin Shanahan, President and CEO of Cleaire. "Our California-based companies are committed to developing retrofit technologies that make it possible for 'in-use' diesel engines to achieve dramatically lower emission levels. This means we've developed, and will continue to develop, cost-effective retrofit systems that can clean up the vast majority of diesel engines in operation today, including the diesel engines in construction equipment."

Cummins is a leader in diesel engine emission technology and was the first company to fully comply with the current EPA regulations governing on-highway emissions in October 2002. The Company is committed to meeting even more stringent EPA standards that are set to take effect in 2007.

Cummins also was the first engine manufacturer to receive a Tier 3 Certificate of Conformity from the EPA with its QSM engine, and is ready to meet the challenge of the Tier 4 Interim off-road diesel emissions rule scheduled to take effect beginning in 2008.

About Cleaire Advanced Emission Controls, LLC

Cleaire is a division of Cummins West Inc., focused on developing, verifying and manufacturing CARB and EPF verified emission control systems to reduce NOx emissions from diesel engines. Cleaire is currently focused on marketing its technologies under the names of Longview(R), Lonestar(TM), and Horizon(TM). Cleaire is a California-based company headquartered in San Leandro with testing facilities in Richmond, Calif., and manufacturing facilities in San Diego.

About Cummins West, Inc.

Cummins West is the northern California and Hawaii distributor for Cummins engine products, Komatsu heavy equipment and Cleaire emission controls technologies. Cummins West has been doing business for more than 70 years.

About the Sacramento Metropolitan Air Quality Management District

The district works with local, state and federal agencies, as well as the business community and private citizens to achieve and maintain healthy air quality for Sacramento.

About the West Coast Diesel Emission Reduction Collaborative

The Collaborative is a partnership of leaders from federal, state, and local government; the private sector; and environmental groups in California, Oregon, Washington, Idaho, Arizona, Alaska, Canada and Mexico committed to reducing diesel emissions along the West Coast. The Collaborative is part of the National Clean Diesel Campaign. For more information, go to www.westcoastcollaborative.org.

About Cummins Inc.

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.