Cummins to Expand High-Horsepower Engine Product Line

Company Expects To Add 200 Jobs Over Next Five Years

SEYMOUR, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today announced that it is expanding its High-Horsepower Technical Center and high-horsepower engine product line at its manufacturing facility in Seymour. The expansion of the center will provide the company with more opportunities for producing high-horsepower clean-diesel and natural gas engines in the future.

Mark Levett, Vice President and General Manager - High-Horsepower Business, made the announcement at the plant and was joined by Indiana Lt. Gov. Becky Skillman, U.S. Rep. Baron Hill and several members of local and state government representing the Seymour area.

Cummins plans to invest approximately $100 million in the expansion at the Seymour plant, which is expected to result in approximately 200 engineering and manufacturing jobs over the next five years. The plant currently employs nearly 450 people.

The Company also announced today that it has changed the name of the facility to the Seymour Engine Plant, from the Cummins Industrial Center. The new name is consistent with the Company's practice at many of its major engine manufacturing locations elsewhere.

"Our high-horsepower business continues to grow in importance," said Tom Linebarger, President and Chief Operating Officer. "This facility and product line expansion will allow us to maintain our technology leadership and strong product portfolio. Cummins will continue to provide leadership as our customers face ever more challenging worldwide emissions regulations."

A new, larger-displacement engine will complement Cummins' current high-horsepower lineup, which powers applications in mining, power generation, marine, oil and gas and rail markets around the world. The product investment will increase the plant's capacity and manufacturing capability, including a new assembly line, paint area and production test cells.

The technical center expansion will almost double the current engineering footprint in the facility and increase Cummins high-horsepower mechanical development capability. Other capital expenditures will include additional equipment, test cells and other facility upgrades. Preparations for the technical center expansion are scheduled to start immediately, and construction is expected to be complete by mid-2011.

"This is an exciting expansion and announcement," said Levett. "Cummins was first to market with our EPA Tier 2 high-horsepower engines, meeting both emissions requirements and our customers' needs for reliability, durability and performance. We are now ready to strengthen our position as an industry leader by taking this technology to larger high-speed diesel and natural gas engines."

The selection of Seymour for this expansion is further evidence of Cummins' commitment to Indiana. The Seymour Engine Plant opened in 1976 and is currently devoted to manufacturing V903, K19, QSK19 and QST30 diesel and natural gas engines.

"Cummins is a homegrown Indiana company making its mark in nearly 200 countries and territories around the world," Lt. Gov. Skillman said. "We are proud of what they've grown here and are excited to see them add even more high-wage, high-tech positions in Southern Indiana."

The state of Indiana and the cities of Seymour and Lawrenceburg have been instrumental in partnering with Cummins to support its continued growth and technical leadership in Southern Indiana. The Indiana Economic Development Corp. and the Indiana cities have offered a package of tax credits and educational grants and have agreed to provide vital infrastructure improvements near the Seymour Engine Plant to facilitate the expansion.

The company also wants to recognize Lilly Endowment for its continued support of advanced manufacturing across South-Central Indiana through its significant funding of the Economic Opportunities 2015 (EcO15) program. EcO15 is designed to create job opportunities for Hoosiers in a 10-county region through improved access to the types of education and skills necessary to succeed in today's advanced manufacturing environment.

"Cummins is excited to be able to strengthen its presence in Indiana and provide more good jobs in our home region," said Mark Gerstle, Vice President and Chief Administrative Officer, and chairman of the Community Education Coalition, which oversees the EcO15 initiative. "The coalition is fortunate to have a number of very strong partners in Indiana, including Lilly Endowment, and this is just the latest example of how public-private partnerships can lead to good jobs and a stronger economy in this state."

About Cummins Inc.

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 $428 million on sales of $10.8 billion in 2009. Press releases can be found on the Web at cummins.com or everytime.cummins.com.

Forward-Looking Disclosure Statement

Information provided in this release that is not purely historical is based on 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 July 9, 2010