Cummins Power Generation Announces Price Increase on New Tier 2 Products

Business Wire, Oct 17, 2005

FRIDLEY, Minn. -- Cummins Power Generation, a division of Cummins Inc. (NYSE:CMI), announces an average price increase of 18 percent on 750 kilowatt to 2000 kilowatt diesel generator sets transitioning from Tier 1 to Tier 2 levels of EPA non-road emissions regulations effective Jan. 1, 2006. E[acute accent]Price increases will range from $16 to $19 per kilowatt above current Tier 1 price levels. E[acute accent]The higher prices reflect the additional value of the advanced technology used to achieve the lower emission levels required by EPA Tier 2 regulations. The price increases also reflect the rising cost of raw materials used in the manufacturing process. E[acute accent]"These adjustments are part of Cummins' strategic response to market conditions and support our leadership position in compliance with new emission standards in the U.S. market," said Tony Satterthwaite, Vice President of the Commercial Generator Set Business at Cummins. "Our goal is to provide value-added technologies that help our customers meet new emission standards without sacrificing product performance." E[acute accent]On Jan. 1, 2007, all stationary applications will have to meet Tier 2 regulations as part of the EPA New Source Performance Standard. Cummins Power Generation will announce 2007 pricing levels on Nov. 1, 2006. E[acute accent]Cummins Power Generation generator sets are used for emergency standby power in a variety of industrial applications. These sets are also used for electrical power in nonroad applications, such as temporary rental solutions. Cummins will offer a full range of products that meet EPA regulations.

E[acute accent]About Cummins Power Generation

E[acute accent]Cummins Power Generation, a subsidiary of Cummins Inc. (NYSE:CMI), is a global leader in increasing the availability and reliability of environmentally responsible electric power around the world. With over 80 years' experience, its global distributor network delivers innovative low-emissions power solutions for any need - commercial, industrial, recreational, emergency and residential. Products include alternators, generator-drive engines, and temporary or permanent pre-integrated power systems, combining generator sets and power control and transfer technologies. Services range from system design, project management, financing, and operation and maintenance contracts to development of turnkey power plants.

E[acute accent]About Cummins

E[acute accent]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. With more than 28,000 employees worldwide, Cummins reported sales of $8.4 billion in 2004. Press releases can be found on the Web at www.cummins.com.