Cummins Inc. Delays Annual Report Form 10-K Filing

    COLUMBUS, Ind.--April 1, 2003--Cummins Inc. announced today that it will delay filing its Annual Report on Form 10-K. The delay relates to the previously announced need for a non-cash accounts payable adjustment primarily associated with the implementation of a new enterprise resource planning system in one of its plants.
    Cummins is continuing to discuss this potential adjustment with the Securities and Exchange Commission (SEC) and the Company's auditors, PricewaterhouseCoopers LLP (PwC), and is working closely with them to finalize the appropriate accounting treatment and the impact on the Company's historical financial statements. The Company will file the Form 10-K as soon as practicable following the resolution of the discussions with the SEC.
    The Company originally estimated the amount of the non-cash understatement of accounts payable to be in the range of $30 to $40 million in the aggregate over several years. However, after investigating this matter for the last two months, the Company now believes the amount associated with this issue to be approximately $23 million pre-tax.
    "We are taking this very seriously and are working with the SEC and PwC to finalize the appropriate accounting treatment as quickly as possible," said Tim Solso, Cummins Chairman and CEO.
    As previously announced, Cummins has postponed its Annual Meeting until the Form 10-K is completed and will notify shareholders when it has been rescheduled.

    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 its customers through more than 500 company-owned and independent distributor locations in 131 countries and territories. With 23,700 employees worldwide, Cummins reported sales of $5.9 billion in 2002. Press releases by fax can be requested by calling News On Demand (toll free) at 888-329-2305. The Cummins home page can be found at www.cummins.com.