2006 To Be Another Outstanding Year for Cummins, Chairman Tells Shareholders; Company Launches New Brand Strategy Focused on Dependability

COLUMBUS, Ind.--May 9, 2006--Cummins Chairman and Chief Executive Officer Tim Solso told shareholders at today's annual meeting that strong growth in all markets should make 2006 an even better year than 2005 when the Company had a record-setting performance.

Also at the meeting, held at the Cummins Technical Center, shareholders elected the proposed slate of nine directors and approved the selection of PricewaterhouseCoopers LLP as the Company's auditor for 2006.

Solso, addressing shareholders, employees and directors, called 2005 a very good year with record revenues of $9.9 billion and record earnings of $550 million or $11.01 a share. He cited the highest gross margin in eight years, record cash from operating and investing activities and a record stock price as evidence of the Company's overall strength.

Over the last three years, Cummins has had an average total shareholder return of 50 percent, compared to a three-year average total return of 12 percent for the S&P 500 Index Fund and 17 percent for the Cummins peer group. In Fortune Magazine's list of the 500 largest companies, Cummins was second overall in earnings per share growth for the last five years.

"We are truly a new Cummins," Solso said. "Our outstanding performance in 2005 puts us in a position to have an even stronger 2006."

Solso said that the Company expects total revenues this year will be 8 to 10 percent higher than in 2005, as Cummins sees continued strength in all markets and invests in areas of profitable growth. The Company earlier announced that 2006 earnings will be in the range of $12.40 to $12.60 a share.

Furthermore, the Company is in a good position to weather the anticipated short-term downturn in the North American heavy-duty truck engine business in 2007 as new emissions regulations take effect.

Also at the annual meeting, Solso unveiled a brand campaign designed to reinforce Cummins as one global company whose hallmark is dependability.

"I am very excited about this new brand approach and the message it sends about the strength of our Company," he said. "By creating clarity and consistency with the Cummins brand worldwide, our external audiences will better recognize who we are and what sets Cummins - and our customer experience - apart from every other brand."

Solso highlighted some of the factors expected to contribute to a strong 2006, to position Cummins for the future and to return greater value to shareholders:

-- Cummins continues to take the lead in technology innovation, giving the Company a competitive advantage in providing customers with products that have superior performance, reliability and fuel economy in meeting new U.S. diesel emission standards in 2007, as well as increasingly stringent standards worldwide.

-- Cummins profitable growth investments in emerging markets, including China and India, along with its new product introductions are helping create a business that is less cyclical and less reliant on the North American heavy-duty truck business, which makes up only 14% of the Company's annual revenues.

-- Cummins is experiencing strong growth in the Distribution Segment, which has quadrupled its earnings over the last five years and is expected to see growth this year. The Company has 17 company-owned international distributors and 10 joint ventures, nine in North America and one in Chile, which collectively generated $107 million in income in 2005.

-- Cummins is strengthening its balance sheet by paying down debt and significantly improving its cost structure through the use of Six Sigma, global sourcing and technical productivity. Cummins will have paid off more than $750 million in debt in 2005 and 2006.

Auditors and board members selected

In the business portion of the meeting, Cummins shareholders ratified PricewaterhouseCoopers LLP and elected nine directors to the Board for one-year terms. All the directors currently serve on the Board at Cummins. They are:

-- Tim Solso, Chairman and Chief Executive Officer (first elected to the board in 1994)

-- Joe Loughrey, President and Chief Operating Officer (2005)

-- Robert J. Darnall, Retired Chairman and CEO, Inland Steel (1989)

-- John M. Deutch, Institute Professor, Massachusetts Institute of Technology (1997)

-- Alexis M. Herman, Chairman and CEO, New Ventures Inc. (2001)

-- William I. Miller, Chairman, Irwin Management Corp. (1989)

-- Georgia R. Nelson, President, Midwest Generation EME (2004)

-- Carl Ware, Retired Executive Vice President Coca-Cola Co. (2004)

-- J. Lawrence Wilson, Retired Chairman and CEO, Rohm and Haas Co. (1990).

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. 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 on the webcast and 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.