Cummins Inc. Begins Exchange Offer for All Its Outstanding 9 1/2 Percent Senior Notes Due 2010

COLUMBUS, Ind.--Feb. 2, 20045, 2004--Cummins Inc. announced today that it had commenced an offer to exchange new 9 1/2 percent Senior Notes due 2010 (the "new notes") for all of its outstanding unregistered 9 1/2 percent Senior Notes due 2010 (the "original notes").

The interest rate on the original notes is currently 10 1/2 percent, which will revert to 9 1/2 percent upon completion of the exchange offer. The new notes will be free of the transfer restrictions that apply to the original notes, but will otherwise have substantially the same terms as the outstanding Original Notes.

The exchange offer will expire at 5 p.m. EST, on March 24, 2004, unless extended by the Company. Tenders of original notes may be withdrawn at any time prior to the expiration date.

The exchange offer is being made pursuant to a prospectus dated February 24, 2004. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any offer of these securities in any state where the offer is not permitted.

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 680 company-owned and independent distributor locations in 137 countries and territories. Cummins also provides service through a dealer network of more than 5,000 facilities in 197 countries and territories. With more than 24,000 employees worldwide, Cummins reported sales of $6.3 billion in 2003. Press releases can be found by accessing the Cummins home page at www.cummins.com.

Statements made in this release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that the Company's actual future results could differ materially from those projected in any such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in the Company's Securities and Exchange Commission filings.