Cummins Expands Joint Venture in India to Boost Engine Production

PUNE, India--Jan. 27, 2006--Cummins Inc. and Tata Motors have signed an agreement that will allow their joint venture, Tata Cummins Ltd. (TCL), to begin manufacturing the popular ISB engine in the near future.

The expansion will significantly increase the number of engines produced by the joint venture and will strengthen Cummins position as a leading producer of engines for the growing medium and heavy-duty commercial vehicle market in India.

TCL currently produces approximately 69,000 Cummins B Series engines a year. Under the agreement, TCL will increase its total engine production to 100,000 units within two years and 120,000 units thereafter. The engines produced by TCL will meet Euro 2, Euro 3 and Euro 4 Indian and European standards for diesel emissions.

The estimated $60 million needed for the expansion will be funded by TCL's ongoing cash flow and joint venture debt.

TCL, formed in 1992, has been a successful joint venture between the two companies and manufactures the Cummins B Series engines in India for use in trucks manufactured by Tata Motors (TML), as well as sales by Cummins in India to other applications and OEMs.

TML is the largest truck producer in India, with a market share of between 60 and 70 percent. The Cummins B Series engines power more than half of those trucks. In addition, the B Series captured a 37 percent share of the overall Indian medium and heavy commercial vehicle engine market in 2004.

Cummins, which has been doing business in India for more than 40 years, has 11 businesses in the country representing all operating segments of the Company. India is one of Cummins' largest and fastest-growing international markets.

About Cummins

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.