Cummins Receives New Unsecured $650 Million Revolving Line of Credit

COLUMBUS, Ind.--Dec. 2, 2004--Cummins Inc. announced today that it has closed on an unsecured $650 million, five-year revolving line of credit. The new revolver replaces a secured $385 million three-year credit facility that was due to expire in November 2005.

The agreement is an important step in Cummins efforts to improve its credit ratings, as the unsecured feature of the line of credit acknowledges the strengthened financial performance of the Company.

Additionally, the size of the credit facility was increased to $650 million, with a strong response from the syndication market. While the Company intends to pay off its $225 million debt maturity in March 2005 with existing cash balances and ongoing cash generation, this new agreement provides significant liquidity to fund Cummins growth well into the future. The new revolver also offers improved pricing for the Company over the previous facility.

The new credit facility will be used for general corporate purposes, as necessary, and for letter of credit issuance. Cummins has not borrowed on its current revolver since December 2003, though the Company currently uses $120 million of availability for letters of credit.

Twenty banks, representing key geographic regions in which Cummins has a major presence, including the United States, Europe, China, India and Australia, are participating in the new revolving credit facility .

The following banks are playing key roles in the new revolver syndicate:

-- J.P. Morgan Securities Inc. and Citigroup Global Markets, Inc. are the joint bookrunners and co-lead Arrangers.

-- The co-documentation agents are:

-- Bank of America, N.A.

-- The Bank of Nova Scotia

-- The Royal Bank of Scotland plc

-- The Bank of Tokyo-Mitsubishi Ltd., Chicago Branch, also is providing a significant commitment to the new facility.

About Cummins

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.

Information provided and statements in this release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes beliefs and intentions on strategies regarding the future. It is important to note that the company's actual future results could differ materially from those projected in 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 Cummins Securities and Exchange Commission filings.