Cummins Reaffirms Its Commitment to Renewable Fuels

COLUMBUS, Ind.--Feb. 8, 2006--Cummins Inc. today reaffirmed its support of biodiesel fuel as a means to potentially improve air quality and reduce the nation's dependence on foreign oil through increased use of renewable fuel sources.

Cummins has approved use of B5 biodiesel (5 percent biodiesel; 95 percent petroleum diesel fuel mix) for use in its full line of on- and off-highway engines. The Company, in its capacity as the exclusive diesel engine supplier for the Dodge Ram, also is supporting DaimlerChrysler in its recently announced development program to approve the use of B20 (20 percent biodiesel) fuel in select Dodge Ram trucks for the 2007 model year.

Initially, DaimlerChrysler will approve B20 fuel for use in certain Cummins-powered Ram trucks sold to military, government and commercial fleet customers. DaimlerChrysler and Cummins also are part of a research partnership working on a national fuel standard that would make B20 an option for all Dodge Ram diesels.

"Biodiesel has significant potential to reduce fossil fuel consumption while at the same time lowering greenhouse gas emissions and providing support to the U.S. agriculture industry," said Christine Vujovich, Vice President - Marketing and Environmental Policy for Cummins. "Real challenges remain in developing a plentiful and consistent supply of biodiesel fuel, but Cummins is committed to supporting efforts to help unlock biodiesel's considerable promise."

While considerable research remains to be done to establish consistent national standards for production of biodiesel fuels, B5 fuel generally is considered effective in on-highway engine applications where pure petroleum diesel fuel currently is used.

Interest in renewable fuel sources has increased significantly in the past decade. They have become an important component of broader "clean diesel" efforts supported by Cummins and other companies and organizations in the diesel engine industry, including the Diesel Technology Forum of which Cummins is a founding member.

The potential of renewable fuels such as biodiesel was highlighted as recently as Jan. 31, 2006 in President George W. Bush's State of the Union address, in which the president called for a 75 percent reduction in oil imports from the Middle East by 2025. U.S Environmental Protection Agency Administrator Stephen L. Johnson discussed the EPA's support of biodiesel and other renewable fuel sources in his keynote address to the National Biodiesel Conference and Expo in San Diego this week.

Note: More information on biodiesel and other clean diesel technologies can be found at the Diesel Technology Forum web site, www.dieselforum.com.

About Cummins Inc.

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. Cummins reported net income of $550 million on sales of $9.9 billion in 2005. Press releases can be found on the Web 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.