Cummins Continues Heavy-Duty Truck Engine Business Restructuring; Ends Discussions With International Truck and Engine Corporation

    COLUMBUS, Ind.--May 14, 2001--Cummins Inc. confirmed today that it had mutually agreed with International Truck and Engine Corporation to end discussions on a potential heavy-duty engine development and manufacturing joint venture.
    Cummins indicated that it will continue to explore a variety of approaches to restructuring its participation in the North American heavy-duty truck engine market.
    Cummins noted that over the last several months it had signed long-term supply agreements with three of the world's leading truck manufacturers -- PACCAR, International Truck and Engine Corporation, and Volvo Trucks North America. Implementation of the agreements is proceeding as planned, and will allow Cummins and its partners to improve their combined cost structure. Cummins also confirmed that its engine product line will meet the deadline to produce lower emissions engines as outlined in a consent decree Cummins signed in 1998.
    Cummins continues to implement a series of restructuring steps, primarily in its engine business, that were announced in December 2000 and are expected to yield $55 million per year in savings by the end of 2001.
    Also, as previously announced, Cummins has been chosen by DaimlerChrysler Corporation to be the exclusive diesel engine supplier for the next-generation Dodge Ram 2500/3500 pickup truck to be introduced in the 2003 model year. In addition, Cummins recently completed a joint venture agreement with Westport Innovations that focuses on the development and sale of high performance natural gas engines for vehicular and stationary engine markets.
    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. In 2000, Cummins reported record sales of $6.6 billion. Press releases by fax may be requested by calling News on Demand at 888-329-2305. Cummins' website on the Internet can be found at 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.