COLUMBUS, Ind. (September 26, 2005) - Cummins Inc. (NYSE:CMI) today announced a new partnership with Blue Bird Corporation.

"We're extremely pleased that Blue Bird has selected us as a preferred partner," said Cummins President - Engine Business, Jim Kelly. "Blue Bird customers will enjoy new levels of reliability, safety and performance, and lower cost of ownership with Cummins engines."

Cummins popular ISB engine will be available in all Blue Bird school buses beginning in early 2006. With over three million B Series engines sold, the ISB has proven reliability and performance. In addition, the latest Cummins ISB achieved a 2 percent fuel economy improvement and significant noise improvements, while meeting the more stringent 2004 EPA emissions requirements. Noise, a significant safety factor, was reduced 50 percent while driving and 80 percent at idle. Industry-leading maintenance intervals remained at 15,000 miles (24,000 km), for a low total cost of ownership.

"We are excited to announce the enhanced partnership with Cummins," said Blue Bird Vice President - Engineering, Dennis Whitaker. "The proven technology of Cummins engines today, along with their integrated engine and aftertreatment system going into 2007, enhances the value of Blue Bird's product offerings to our customers."

Cummins engines for 2007 build on the proven architecture of today's engines and electronics. The addition of the integrated Cummins Particulate Filter and a crankcase ventilation system allows these engines to meet the more stringent emissions standards which begin in January 2007.

All Cummins engines for 2007 will feature the proven cooled-EGR subsystem, with the patented Holset Variable Geometry Turbocharger that provides exceptional engine response at every rpm. This subsystem has proven performance and reliability, with more than 10 billion real-world miles of experience.

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.