Cummins Power Generation Announces Price Increases for 2007

FRIDLEY, Minn.--Sept. 19, 2006--Cummins Power Generation, a division of Cummins Inc. , announces price increases for its Commercial Generator Set products between 15 and 2700 kW. Prices of EPA Tier 3 certified sets will rise by up to 10 percent while prices of EPA Tier 2 certified sets will rise by up to 7 percent.

Prices have been raised in part due to market conditions and the rising cost of raw materials. The higher prices also reflect the advanced technology used to achieve the lower emission levels mandated by the U.S. EPA to take effect on January 1, 2007. Cummins has been recognized as a leader in emissions technology by industry groups.

"These adjustments are part of Cummins' strategic response to market conditions," said Tony Satterthwaite, Vice President - Commercial Generator Set Business. "With even more stringent EPA emissions regulations coming, we will continue to reinvest in our leading technology and operations to serve our customers well."

About Cummins Power Generation

Cummins Power Generation Commercial generator sets are used for continuous, prime and standby power in a variety of commercial and industrial applications. These sets are also used for electrical power in nonroad applications, such as temporary rental solutions. Cummins offers a full range of products that meet EPA regulations.

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.

Forward-looking statements disclosure

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.