Cummins Inc. Increases
Dividend by 40 Percent

COLUMBUS, Ind.(July 9, 2008) -- The Cummins Inc. (NYSE: CMI) Board of Directors today increased the Company’s quarterly cash dividend on common stock by 40 percent to 17.5 cents per share, up from 12.5 cents per share. The dividend is payable on Sept. 2, 2008 to shareholders of record on August 22.

“The Company continues to perform well, despite significant economic challenges, and we wanted to reward our shareholders’ continued confidence in Cummins,” said Tim Solso, Cummins Chairman and Chief Executive Officer. “Today’s actions are indicative of the Board’s continued confidence in the Company’s ability to grow profitably and generate strong cash flow.”

The dividend increase is the Company’s third since July 2006. During that time, Cummins has increased its dividend rate by 133 percent on a split-adjusted basis. From 2003 to 2007, Cummins produced an average annual shareholder return of 58 percent – ninth best among the Fortune 500 during that period.

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.