Cummins Inc. Debt Rating Raised to Investment Grade by Moody's

COLUMBUS, Ind.--May 9, 2006--Moody's Investors Service today raised its senior unsecured rating on Cummins Inc. to investment grade status. In raising the rating to Baa3, from Ba1, Moody's cited the Company's "more robust business model and financial structure," which it says improve Cummins ability to perform well through the entire business cycle.

This is the second time in eight months that Moody's has raised Cummins credit rating. Standard & Poor's also raised Cummins to investment grade status in July 2005.

In its report today, Moody's - which gave Cummins a 'stable' outlook - noted that the Company's focus on reducing its cost structure and the negotiation of long-term supply contracts better position it to weather the expected short-term drop in North American heavy-duty engine sales in 2007 as a result of the new EPA emissions regulations that take effect Jan. 1, 2006.

Additionally, Moody's noted that Cummins has "continued to strengthen its product and geographic diversification," citing the Company's medium and light-duty engines, power generation, components and distribution operations as examples.

As Cummins financial performance has improved, reducing debt has been a central part of the Company's efforts to strengthen its balance sheet. Cummins reduced its long-term debt by more than $290 million in 2005. In an announcement prior to its annual shareholders meeting today, Cummins said it will redeem $300 million worth of convertible cumulative quarterly income preferred securities (also known as QUIPS) on June 15, 2006 - the first call date.

Those actions, combined with a previously announced plan to retire $250 million in high-yield notes in December 2006, will have reduced Cummins long-term debt by more than $800 million since the beginning of 2005.

Cummins recently reported strong first quarter earnings and raised its earnings guidance for 2006 to $12.40-$12.60 a share - up from its previous guidance of $11.90 - $12.10.

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 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.