Cummins Emission Solutions Announces Strategic Partnership with EMCON Technologies; Plans to Close its Wautoma (Wisc.) Plant

COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Emission Solutions (CES), a subsidiary of Cummins Inc. (NYSE: CMI), announced today it will strategically partner with EMCON Technologies LLC (EMCON) in the manufacturing of CES-Designed emission controls systems for the 2010 on-highway truck market.

CES will continue to provide the integrated DPF-SCR systems for meeting 2010 EPA emission standards from its existing manufacturing base in Wisconsin. EMCON will be the manufacturer of CES's Diesel Particulate Filters (DPF).

"We are very excited about the potential created by this strategic partnership," said Srikanth Padmanabhan, President of Cummins Emission Solutions. "CES has industry leading capabilities in knowledge of engines, aftertreatment controls, engineered components and system integration; EMCON's expertise is in exhaust aftertreatment packaging. The result of this winning combination will be state-of-the-art aftertreatment products and systems that our customers demand for today's clean-running diesel engines."

Padmanabhan said this partnership would allow the strategic alliance to leverage the combined scale and provide further business growth opportunities in the future.

Steve Scgalski, Senior Vice President and Chief Operating Officer of EMCON said, "We are extremely pleased with this opportunity to partner with Cummins Emission Solutions, the global leader in the supply of diesel engine aftertreatment systems for both on- and off-highway vehicle manufacturers. We are highly confident that the combined capabilities of CES and EMCON will enhance our joint ability to meet the increasingly stringent emissions demands of the global commercial vehicles market."

Plans call for EMCON to begin production of the CES DPF products in late 2009.

CES also said it will shut down its Wautoma (Wisconsin) Plant. Approximately 180 people are employed at the Wautoma Plant, which will close its doors by the end of March. The other emission control and exhaust products currently manufactured in the Wautoma facility will be moved to other CES manufacturing locations in Wisconsin. CES will review opportunities to transfer some people to other Cummins locations, but these opportunities are expected to be very limited due to the market conditions.

"We have taken the actions that are painful, but necessary to help us through these recessionary times and make us a stronger company," said Padmanabhan. "Because of a significant decrease in demand, it was not prudent to continue the operations at Wautoma."

About Cummins Emission Solutions

Cummins Emission Solutions is a leading global designer, integrator, manufacturer and distributor of exhaust aftertreatment systems and components for the on- and off-highway medium duty, heavy duty and high horsepower engine markets. With key operations in Indiana, Wisconsin, the United Kingdom, South Africa, China and Brazil, Cummins Emission Solutions products serve both first-fit original equipment manufacturers and retrofit customers.

About EMCON Technologies

EMCON Technologies is a leader in the global emission technology industry with headquarters in Troy, Michigan. The company serves worldwide light and commercial vehicle manufactures. EMCON has 33 manufacturing plants and engineering centers in 19 countries, with 6,700 employees and several long-term joint venture relationships. EMCON is privately owned by One Equity Partners, the private equity business of JP Morgan Chase Bank.

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 approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations. Cummins reported net income of $739 million on sales of $13.05 billion in 2007. Press releases can be found on the Web at www.cummins.com.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.

    Source: Cummins Inc.

Released January 20, 2009