Dr. Steve CharltonDr. Steve Charlton

Cummins Inc.Cummins Inc.March 16, 2004March 16, 2004

Cummins Technology Cummins Technology Direction For 2007 Direction For 2007 Remains UnchangedRemains Unchanged

Deliver the best value for the customer and the Deliver the best value for the customer and the environment.environment.

Vehicle integration with partner OEMs to optimize Vehicle integration with partner OEMs to optimize solution for end-usersolution for end-user

Active particulate filter for PMActive particulate filter for PM No NOx aftertreatment for heavy-duty engines in 2007No NOx aftertreatment for heavy-duty engines in 2007

– Diesel Engine Summit I (June 2003)Diesel Engine Summit I (June 2003)

Today’s Proven Cooled Today’s Proven Cooled EGR Engines Remain EGR Engines Remain Foundation For 2007Foundation For 2007

Over 2 billion miles of Over 2 billion miles of experience with proven experience with proven reliabilityreliability

40,000 engines in 40,000 engines in operationoperation

Best overall lifecycle value Best overall lifecycle value Cummins has more EPA Cummins has more EPA

’02 compliant heavy-duty ’02 compliant heavy-duty engines on the road than engines on the road than any other engine any other engine manufacturermanufacturer

Choosing The Right Choosing The Right Technology Is ImportantTechnology Is Important

Operating conditions and Operating conditions and economic factors influence the economic factors influence the technology path for each technology path for each market. market.

Requires sustained investment Requires sustained investment in research and developmentin research and development

Today’s Cooled EGR Today’s Cooled EGR Engine Technology is Engine Technology is Proven and SimpleProven and Simple

CHARGE AIR COOLER

EGREGRVALVEVALVE

EG

R C

OO

LE

RVARIABLEVARIABLE

GEOMETRYGEOMETRYTURBOCHARGERTURBOCHARGER

CHARGE AIR COOLER

EGREGRVALVEVALVE

EG

R C

OO

LE

RVARIABLEVARIABLE

GEOMETRYGEOMETRYTURBOCHARGERTURBOCHARGER

EXHAUSTFILTER

Exhaust Filter Only Exhaust Filter Only Change For 2007Change For 2007

Stable Architecture Provides Stable Architecture Provides Best Lifecycle Value and Best Lifecycle Value and ReliabilityReliability

==

20022002 20072007

Ultra Low Sulfur Fuel Ultra Low Sulfur Fuel NecessaryNecessary

Over 95% of highway diesel fuel produced in 2006 Over 95% of highway diesel fuel produced in 2006 projected to meet the 15 PPM standardprojected to meet the 15 PPM standard

Additional cost of the new fuel expected to be less Additional cost of the new fuel expected to be less than $0.05/gallonthan $0.05/gallon

Provides opportunity to improve particulate emissionsProvides opportunity to improve particulate emissions

Enables lowest-cost NOx and PM technology Enables lowest-cost NOx and PM technology solutionssolutions

Lubricating Oil Specifications Lubricating Oil Specifications Change For Aftertreatment Change For Aftertreatment CompatibilityCompatibility

Reduce ash to enable extended maintenance Reduce ash to enable extended maintenance intervals on the diesel particulate filterintervals on the diesel particulate filter

Maintain other properties at current levels for Maintain other properties at current levels for backward compatibilitybackward compatibility

Cost impact expected to be negligibleCost impact expected to be negligible

SCR Viable Solution For SCR Viable Solution For EuropeEurope

Euro IV standards take effect beginning Euro IV standards take effect beginning October 2005October 2005

Selective catalytic reduction (SCR) is the Selective catalytic reduction (SCR) is the right technology for these marketsright technology for these markets– Diesel fuel prices are very high in Europe Diesel fuel prices are very high in Europe

relative to urearelative to urea– Using urea to reduce fuel consumption Using urea to reduce fuel consumption

makes economic sensemakes economic sense

Active Diesel Particulate Active Diesel Particulate Filters Required for 2007Filters Required for 2007

Porous wall-flow filter mediaPorous wall-flow filter media Currently being used in Currently being used in

retrofit applicationsretrofit applications >95% particulate capture>95% particulate capture Maintenance intervals for Maintenance intervals for

cleaning > 150k milescleaning > 150k miles

Application Impacts Filter Application Impacts Filter RegenerationRegeneration

Passive continuous regeneration Passive continuous regeneration in typical HD duty-cyclesin typical HD duty-cycles

Active regeneration only when Active regeneration only when required required

Cummins extensive testingCummins extensive testing– Duty cycleDuty cycle– ClimateClimate

20032003 20042004 20052005 20062006 20072007 20082008 20092009 20102010 20112011

2007 Product Development 2007 Product Development Time LineTime Line

Engine Technology FinalizedEngine Technology Finalized

Chassis Integration, Cooling Chassis Integration, Cooling Systems OptimizationSystems Optimization

Fleet Field TestingFleet Field Testing

Ultra Low Sulfur Fuel AvailableUltra Low Sulfur Fuel Available

Emission DeadlinesEmission Deadlines

Product Product DevelopmentDevelopment

OBDOBD

Industry and Regulators Agree 2007 Deadline Industry and Regulators Agree 2007 Deadline should not be Jeopardized by Further should not be Jeopardized by Further Requirements on the ManufacturersRequirements on the Manufacturers

Expect Draft OBD Regulations will Require Expect Draft OBD Regulations will Require some Diagnostics in Addition to those already some Diagnostics in Addition to those already of the Engineof the Engine

Do not expect New Requirements to affect Do not expect New Requirements to affect our Ability to Provide Field Test Engines our Ability to Provide Field Test Engines on Timeon Time

SummarySummary

Cooled EGR with particulate filter remains the Cooled EGR with particulate filter remains the right technology for heavy-duty trucks in 2007right technology for heavy-duty trucks in 2007

Cummins 2007 engines will look just like the Cummins 2007 engines will look just like the 2002 engines2002 engines

Fully engaged with the Truck OEMs to Fully engaged with the Truck OEMs to integrate 2007 Solutionsintegrate 2007 Solutions

Field Evaluation Engines available mid-2005Field Evaluation Engines available mid-2005

2007 Emissions 2007 Emissions Technology White Paper Technology White Paper Available TodayAvailable Today

2007 technology options 2007 technology options explainedexplained

Pick up after panel Pick up after panel discussion or at discussion or at Cummins boothCummins booth