Cummins and Russian Manufacturer KAMAZ Form Joint Venture to Produce Mid-Range Engines

The 50-50 joint venture will build on the Cummins and KAMAZrelationship that dates from the early 1980s. Among customers of thenew company are KAMAZ trucks and buses, as well as trucks, buses andagricultural equipment produced by other manufacturers in Russia,Belarus and the Ukraine. The engines will be produced in two stages tocomply with Euro II and Euro III standards for diesel emissions.

The B Series engines will be manufactured at the joint venturefacilities, co-located with KAMAZ in Naberezhnye Chelny, Tatarstan,about 700 miles east of Moscow. The first engines will be assembled inearly 2006.

"We are very excited about this new joint venture with our friendsat KAMAZ," said Tim Solso, Cummins Chairman and Chief ExecutiveOfficer. "Cummins will benefit from its association with this highlyrespected original equipment manufacturer and its extensive dealernetwork in the Russian market. KAMAZ will gain from the use of Cumminsdependable clean diesel engines and will have access to our newbusiness and manufacturing technologies."

As part of the joint venture agreement, Cummins engines will beserviced through the extensive KAMAZ network of 150 Autocenters, thelargest in the Commonwealth of Independent States, as well as theCummins independent dealer network.

Steve Chapman, Cummins Group Vice President - Emerging Markets andBusinesses, and Irek F. Gumerov, Deputy General Director of KAMAZ,signed the joint venture agreement at the KAMAZ offices in NaberezhnyeChelny.

"Two years ago we began selling a six-ton truck to the Russianmarket, and a Cummins engine was at the heart of our great successwith this product," said Sergey Kogogin, General Director of KAMAZ."Cummins understands the potential of the Russian market and theopportunities that exist with KAMAZ.

"By establishing a joint venture, we have taken the next steptoward cooperation. Now we are not just a seller and buyer, butbusiness partners on an international scale," he added.

About KAMAZ

KAMAZ Inc., formed in 1976, is the largest Russian vehiclemanufacturer and one of world's top 10. The united production complexof KAMAZ Inc. in Naberezhnye Chelny consists of 13 largespecial-purpose plants developing, producing, assembling vehicles andcomponents including V8 engines. KAMAZ is an owner of six assemblylines outside of Russia (in Poland, Kazakhstan, Azerbaijan, Ukraine,Ethiopia and Vietnam) and 150 service centers. With production of morethan 30,000 trucks per year, KamAZ holds a 37.3 percent market share.In 2004, the KAMAZ Group of companies earned a net profit of 208million rubles (approximately $7.3 million USD).

In the past 29 years, KAMAZ has produced 1.7 million trucks,ranking it in eighth place in the world in diesel production. It hasmore than 30 truck models among its product line. KAMAZ has 55,000employees.

About Cummins

Cummins Inc., a global power leader, is a corporation ofcomplementary business units that design, manufacture, distribute andservice engines and related technologies, including fuel systems,controls, air handling, filtration, emission solutions and electricalpower generation systems. Headquartered in Columbus, Indiana, (USA)Cummins serves customers in more than 160 countries through itsnetwork of 550 Company-owned and independent distributor facilitiesand more than 5,000 dealer locations. With more than 28,000 employeesworldwide, Cummins reported sales of $8.4 billion in 2004. Pressreleases can be found on the Web at www.cummins.com.

Information provided in this release that are not purelyhistorical are forward-looking statements within the meaning of thePrivate Securities Litigation Reform Act of 1995, including statementsregarding the company's expectations, hopes beliefs and intentions onstrategies regarding the future. It is important to note that thecompany's actual future results could differ materially from thoseprojected in such forward-looking statements because of a number offactors, including, but not limited to, general economic, business andfinancing conditions, labor relations, governmental action, competitorpricing activity, expense volatility and other risks detailed fromtime to time in Cummins Securities and Exchange Commission filings.