Agenda

1. Agenda • Regulatory Background • Proposed Rule • Summary

2. 2010: Near-Zero NOx and PM NOx / NOx+HC Particulate 0.6g/HP-hr 0.6 12 10.7g/HP-hr 0.5 10 0.4 8 6.0g/HP-hr 0.3 6 0.25g/HP-hr 5.0g/HP-hr 4.0g/HP-hr 0.2 4 2.5g/HP-hr 0.1g/HP-hr 1.2g/HP-hr* 2 0.1 0.01g/HP-hr Urban Bus 0.05g/HP-hr 0.2g/HP-hr 0 0 1988 1990 1995 2000 2005 2010 2015 2020 1988 1990 1995 2000 2005 2010 2015 2020 * Phase-In Average

3. NOx, PM CO2 Evolution of Diesel Technology Selective Catalytic Reduction Diesel Particulate Filter Cooled Exhaust Gas Recirculation Electronic Fuel Systems Aftercooling 1990 2000 2010 2020

4. CO2 Fuel Efficiency Reducing CO2 Low Carbon Fuels Hybrids Idle Reduction Low Temp Aftertreatment High Efficiency Clean Combustion Waste Heat Recovery

5. Waste Heat Recovery vs. Hybrid Waste Heat Recovery Hybrid Fuel Economy Benefit Seldom Start/Stop Frequent Start/Stop Duty Cycle Vocational Vehicles Combination Tractors

6. Regulatory Background • Clean Air Act Supreme Court ruled that the Clean Air Act covers greenhouse gases EPA made endangerment finding EPA regulating mobile source greenhouse gases • Energy Independence and Security Act of 2007 DOT regulate commercial vehicle fuel efficiency • State of California CARB precedence with passenger cars • International EU, Japan, China, India, etc. moving forward with regulations

7. White House Announcement May 21, 2010 Rule proposed October 2010 to be finalized by July 2011

8. Vehicle and Application Complexity CAFE Regulations Since 1975 Passenger Vehicles

9. Segmentation Heavy-duty Pickups and Vans Vocational Vehicles Combination Tractors

10. Reuse Existing Engine Protocols Tractor Duty Cycle (SET Test) Vocational Duty Cycle (FTP Test)

11. MHD Diesel Engine Standards Medium Heavy Duty

12. HHD Diesel Engine Standards Heavy Heavy Duty

13. Vehicle Standards Combination Tractors Heavy-duty Pickups and Vans Vocational Vehicles

14. Combination Tractor Simulation Controls Settings Wheel Design Component Test Vehicle Speed Limiter Extended Idle Reduction Rolling Resistance Weight Reduction Aerodynamic Cd Vehicle Model CO2 (g/ton*mile)

15. Vocational Vehicle Simulation Component Test • Tire rolling resistance value entered directly into GEM • Exclusion for vehicles that “spend a majority of their operations off-road” Rolling Resistance Vehicle Model CO2 (g/ton*mile)

16. Regulatory Framework

17. What does this mean in practice? • The chassis manufacturer will certify the vehicle for tires • The tractor manufacturer will certify the vehicle for aerodynamics, wheel weight, tires, idling and speed limiters Combination Tractors Vocational Vehicles • The engine manufacturer will certify the engine for NOx, PM and CO2 Engines

18. GEM % Gains By 2017 Cummins Confidential

19. On-Highway Product Plan • SCR is foundation for the future • Reduces NOx to near zero levels required • Enables greater fuel efficiency • No major engine or hardware changes anticipated to meet new greenhouse gas and fuel consumption standards • Expected product launch in 2013 to align with On-Board Diagnostic (OBD) requirements across all engine platforms and these new standards

20. Final Thoughts • EPA and DOT have developed a sound regulation that builds on existing programs • Numerous stakeholders have been involved over the last 3 years resulting in broad support • Regulatory structure provides clarity and certainty to invest in engine technology development • Although important details remain, the regulation needs to be finalized by July 30, 2011 to deliver improvements by 2014

21. Operator InterfaceHeavy Duty and Medium Duty Engines with SCR

22. Response to Low DEF Tank Level 22 * Use of audible tones with notification is optional and OEM specific ** The system will attempt to build pressure on a key-cycle or after the tank is filled to a level that will clear stage 3.

23. Response to Incorrect DEF * Once incorrect reducing agent (DEF) has been detected the vehicle must be taken to an authorized service center to deactivate the warning lights and inducements.