Columbus, IND. – 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.