COLUMBUS, Ind. (October 19, 2006) - Cummins Inc. (NYSE:CMI) celebrated a key milestone with the shipment of the 1.5-millionth Cummins Turbo Diesel at its MidRange Engine Plant, signifying both the growing popularity for diesels in the automotive market and the Cummins Turbo Diesel.


"Producing 1.5 million Cummins Turbo Diesel engines over the past 18 years is an incredible milestone for Cummins. It demonstrates that the American truck buyer not only recognizes the benefits of diesel technology but also believes in the proven performance of the Cummins Turbo Diesel. As fuel prices increase, we expect demand to continue to grow. Cummins is poised to meet the growing demand," said Dave Crompton, Vice President - MidRange Engine Business.


With an average fuel savings of up to 40 percent, diesel is the most efficient internal combustion engine in the world - delivering more miles per gallon than a comparable gasoline engine. According to a recent study by J.D. Power and Associates, diesel cars, trucks and SUVs are expected to grow from 3 percent market share in 2004 to 7.5 percent by 2012.


Technologies such as a high pressure common rail fuel system and Cummins full-authority electronic controls provide superior performance and sociability for operators while reducing emissions levels. With the implementation of low-sulfur diesel fuels in 2007, emissions will be reduced even further.


Cummins Turbo Diesel Background


When launched in 1988 for the 1989 model year, Cummins expected to produce only 8,000 Cummins Turbo Diesels for Chrysler Group's Dodge Brand annually. That number quickly escalated to well over 16,000 engines in the first year of production. This growth in popularity has carried on with current record levels of production expected to reach over 165,000 Cummins Turbo Diesel engines for 2006.


Throughout the years of development work on the Turbo Diesel, Cummins has continually applied the right technology at the right time, ensuring that the truck owner would experience improved performance at each emissions level change. From 1989 to 2006, power has increased from 160 hp to 325 hp and torque from 400 lb-ft to 610 lb-ft. For the 1994 model year, Cummins boosted horsepower and torque while maintaining emissions compliance. In 1998, Cummins launched its full-authority electronic controls, providing quicker acceleration and better cold-starting capability as well as improved reliability.


Cummins also managed to make its powerful Turbo Diesel even quieter by adding a high pressure common rail fuel system in 2003, further enhancing the engine's sociability as well as positioning it to meet ever more stringent emissions requirements. The Cummins Turbo Diesel has the highest durability in this class of pickups, with an average life-to-overhaul of 350,000 miles - more than 100,000 miles higher than any competitive engine.


"A few far-thinking creative people at Chrysler and Cummins got together 20 years ago and took a chance, betting the American public would work smarter and play harder in a Cummins Turbo Diesel-powered Dodge Ram pickup truck," said Jeff Caldwell, Cummins Executive Director - DaimlerChrysler Business. "Since beginning production in 1988, over 1.5 million customers have enjoyed the durability, fuel economy and performance of this winning combination. Cummins is proud to recognize Chrysler Group as its largest-volume customer and the only customer to which an entire Cummins plant's operation and output are dedicated."


A Good Investment for the State of Indiana


With increased demand for the Cummins Turbo Diesel engine, Cummins expanded production to accommodate the engine's worldwide popularity. The new MidRange Engine Plant was the second MidRange diesel engine plant to be opened by Cummins in North America, complementing the Rocky Mount, N.C., production facility, which opened in 1983.


Cummins opened its Walesboro, Ind., facility for Cummins Turbo Diesel production with the help of workforce grants from the State of Indiana. Indiana provided assistance to extensively educate and train the Cummins plant employees. The State of Indiana also supplied infrastructure assistance to the region that may have attracted several other manufacturers to the area.


The Turbo Diesel is manufactured at the Cummins MidRange Engine Plant, a plant that was designed to minimize its impact on the surrounding environment. The site was carved into the southern Indiana landscape with the intent of making minimal change to its surroundings. The facility was built below ground level with the employee parking area on its roof, which significantly reduced the amount of acreage required for the plant. Clean air and water were also major concerns in the planning stages of the facility. Cummins added three sewer systems which thoroughly remove all wastes such as oil and detergents. The interior was also designed with dust and oil mist controls that provide a healthy and clean work environment for the employees as well as the high-precision engines they produce. The Cummins MidRange Engine Plant currently operates on three shifts and employs well over 900 people.


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.