Cummins Closes St. Peter Facility

    COLUMBUS, Ind.--March 9, 2001--Cummins Inc. announced today it would move its Cummins Power Generation electronics operation located in St. Peter, Minnesota, to its manufacturing facility in Fridley, Minnesota and close the St. Peter facility.
    The company's power supply business based in Eden Prairie, Minnesota will also be closed. These actions are a part of the restructuring and cost reduction strategies Cummins announced this past December.
    The company also said its commercial alternator production operation, currently housed in Fridley, will be moved. The consumer alternator production currently in Fridley will not be affected.
    The St. Peter's operation currently employs approximately 320 full-time workers and the move is expected to be complete by September 30, 2001. The Eden Prairie facility is staffed with 20 full-time employees, and the phase down of the operation is tentatively scheduled to be complete by the end of the second quarter of 2001. The Fridley alternator production operation currently employs approximately 200 full-time workers, and the transition will happen over the next two years. All eligible employees will be offered a severance package and outplacement assistance.

    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 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.

    Certain information in this press release is forward-looking and involves risks and uncertainties, including general economic and competitive conditions that could significantly affect expected results.