CUMMINS MERCRUISER DIESEL ANNOUNCES DISTRIBUTION PLANS FOR UNITED STATES

Cummins MerCruiser Diesel, a 50/50 joint venture between Cummins, Inc. and Mercury Marine, has announced the channel distribution plan for the United States.  The current Cummins Distributor network will distribute the full CMD product line including the Cummins and MerCruiser diesel brands.  MerCruiser diesel dealers who were previously part of Mercury’s Diesel Power Center Program are being evaluated by the Cummins distributor network and it is anticipated that many will continue to play a role in support of service and repower opportunities throughout North America.
 
“Our vision at CMD is to become the premier worldwide supplier of integrated diesel marine propulsion units,” said Scott Patrohay, President and Chief Executive Officer of Cummins MerCruiser Diesel. “The team at CMD Marine is meeting the challenges of bringing together the exceptional brand recognition and products of our two companies.  Cummins MerCruiser Diesel will create a new level of customer value from prop-to-helm by combining our leadership in the diesel marine industry,” said Patrohay.
 
“Over the past eight months we’ve been working with Cummins and Mercury distribution leaders around the world to develop the best regional distribution model to facilitate growth.  We’ve made great progress toward deciding the distribution lead in South America and the Pacific (Australia and New Zealand), now that we have the US decision behind us.  We expect to make distribution announcements regarding these markets by the second quarter of 2003,” said Gary Dickman, Vice President of Worldwide Sales and Marketing.  “We’re taking the necessary time to analyze and deliver the best possible distribution outcome worldwide. We will build a distribution network that delivers improved customer service and OEM support as we evolve into the industry’s prop-to-helm performance source.  This is a part of our company’s vision and it is what our OEM customers and consumers demand of us,” said Dickman.
 
Based in Charleston, S.C. (USA), Cummins MerCruiser Diesel is a joint venture between Cummins Marine and Mercury Marine.  The joint venture’s responsibilities include designing, manufacturing and providing after-sales support worldwide for marine products and offers a broad range of power, with available ratings from 120 – 670 horsepower for recreational applications and
77 – 588 horsepower for commercial applications.
 
Cummins retains its current high-horsepower commercial marine and auxiliary power business, which continues to be headquartered in Charleston, South Carolina.  Mercury Marine retains its traditional gas engine propulsion business.
 
 
Mercury Marine is a division of the Brunswick Corporation, headquartered in Lake Forest, Illinois.  Brunswick Corporation is a manufacturer and marketer of leading consumer brands in the marine engine and boating markets as well as the recreational fitness, bowling and billiard markets. Mercury Marine’s home page can be found at www.mercurymarine.com.
 
A global power leader, Cummins Inc., is a corporation of complementary business units that design, manufacture, distribute, and service electrical power generation systems, engines, and related technologies, including fuel systems, controls, air handling, filtration, and emissions solutions.  Headquartered in Columbus, Indiana (USA), Cummins serves its customers through more than 500 company-owned and independent distributor locations in 131 countries and territories.  With 24,800 employees worldwide, Cummins reported sales of $5.7 billion in 2001.  Cummins home page can be found at www.cummins.com.