Xi'an Cummins Engine Company Starts Production of Cummins ISM 11-Liter Engine.

Xi'an Cummins Engine Company Limited (XCEC), a 50/50 joint venture between Cummins Inc. (NYSE:CMI) and China's Shaanxi Automobile Group Company Limited (Shaanqi Group) today officially began production of the Cummins ISM 11-liter heavy-duty engine.

The ISM is one of the flagship engines of Cummins' heavy-duty product line. In addition to proven fuel economy and dependability, the ISM meets the toughest emission standards worldwide, including EPA 2007 and Euro IV. With a power range from 335 to 440 horsepower, the ISM is the ideal power choice for heavy-duty vehicles with gross vehicle weight between 26 and 44 tons - including trucks, long-distance coaches and double-decker buses.

The market for heavy-duty trucks in China with payloads greater than 15 tons is expected to be around 200,000 units by 2010. With $24 million initial investment from both sides, XCEC's projected production capacity is 50,000 units by 2010.

"The demand in China for high-performance and environmentally sound heavy-duty truck engines is growing quickly, and XCEC will enable Cummins to compete for a leadership position in this market," said John Watkins, Cummins Vice President - Managing Director East Asia. "By combining our technology with a strong local partner, which offers a significant OEM base for our products, Cummins is poised to significantly expand its portfolio of engine products in the important China market."

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