November 2005

Cummins Power announces price increase on new Tier 2 products

Fridley, MN— Cummins Power Generation, a division of Cummins Inc., announced an average price increase of 18 percent on 750 kilowatt to 2000 kilowatt diesel generator sets transitioning from Tier 1 to Tier 2 levels of EPA non-road emissions regulations effective January 1, 2006.

Price increases will range from $16 to $19 per kilowatt above current Tier 1 price levels.

The higher prices reflect the additional value of the advanced technology used to achieve the lower emission levels required by EPA Tier 2 regulations. The price increases also reflect the rising cost of raw materials used in the manufacturing process.

“These adjustments are part of Cummins’ strategic response to market conditions and support our leadership position in compliance with new emission standards in the U.S. market,” said Tony Satterthwaite, vice president of the Commercial Generator Set Business at Cummins.

On January 1, 2007, all stationary applications will have to meet Tier 2 regulations as part of the EPA New Source Performance Standard. Cummins Power Generation will announce 2007 pricing levels on November 1, 2006.

Cummins Power Generation generator sets are used for emergency standby power in a variety of industrial applications. These sets are also used for electrical power in nonroad applications, such as temporary rental solutions.

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