Mack Targets New Markets with Cummins Agreement

15 October 1998

Mack Targets New Markets with Cummins Agreement

    LEHIGH VALLEY, Pa.--Oct. 14, 1998--Mack Trucks Inc., and Cummins Engine Company Inc., Wednesday announced a long-term supplier agreement that will broaden Mack's engine line-up and make Cummins its exclusive supplier of vendor engines.
    "Combined with our proprietary Mack engine line, this agreement allows us to better meet the needs of customers in every segment of today's heavy-duty truck market," said Mack President and CEO Michel Gigou. "It's an important part of our strategy to build on five straight years of market share growth."
    Gigou emphasized that Mack remains totally committed to the 12-liter Mack E-TECH(TM) engine, which the company introduced in 1997. The E-TECH engine will continue to be at the forefront of Mack's product strategy.
    In fact, E- TECH production levels will continue to increase into 1999. The agreement with Cummins will allow Mack to meet the needs of customers who require smaller or larger electronic engines than Mack now offers.
    Because a significant portion of the new agreement involves Mack vehicles that have not yet been introduced to the market, neither company will be elaborating on the specifics of the agreement until early in 1999.
    The companies did announce that Mack will be offering -- in certain vehicles -- Cummins 8.3-liter ISC engines, 9-liter ISL engines, ISX and Signature 600 engines.
    "This agreement represents an important step in Mack's plan to increase our dominant position in the construction and refuse segments of the market, while aggressively targeting the growing highway segments," Gigou said.
    "After a careful review of our options, we have selected Cummins to complement our E-TECH engine line. Cummins has just completed a major investment in a new range of products -- their technology and market acceptance fit in well with our product strategies."
    Dedicated to quality, reliability, and total customer satisfaction, Mack Trucks Inc. has provided innovative, forward-thinking products and services to its customers worldwide for nearly a century.
    Mack is one of North America's largest producers of heavy-duty trucks, in addition to major product components. The company also markets a line of medium-duty diesel trucks throughout North America. MACK vehicles are sold and serviced in more than 65 countries worldwide.

    For more information about Mack, visit our Web site at
     www.macktrucks.com