Cummins Inc. Debt Rating Raised to Investment Grade by S&P

COLUMBUS, Ind.--Aug. 1, 2005--Standard & Poor's has raised Cummins Inc.'s debt rating to investment grade, citing an improved operating performance and strengthened financial profile.

S&P raised Cummins corporate credit rating to "BBB-minus" from "BB-plus." S&P's outlook on the company continues to be rated "stable."

Cummins recently reported record second quarter earnings and sales, and raised its earnings guidance for 2005 to $10.10-$10.30 a share - up from its previous guidance of $9.00 - $9.20. The Company, which generated $217 million in cash from operations in the second quarter, saw stronger revenues across all its businesses and in most markets around the world during the second quarter.

Reducing debt is a central part of Cummins strategy to strengthen its balance sheet and improve its liquidity, and the Company has reduced its debt by $258 million in 2005. The Company's targeted debt-to-capital range has been 35 to 45 percent, and Cummins is currently at the top end of that range.

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 customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. With more than 28,000 employees worldwide, Cummins reported sales of $8.4 billion in 2004. Press releases can be found on the Web at www.cummins.com.