ALTERNATIVE. EVERY Next Generation Natural Gas Engine 2007

Joint Venture Company Develop, market and sell leading line of gaseous fueled, high performance, low emission, economically viable engines Create OEM availability; develop sales channels and industry alliances Control product specifications, pricing, marketing, international manufacturing initiatives New market development & demonstration initiatives Alternative fuel industry & government relations Next generation technology programs Corporate finance & communications Global manufacturing (India, China, Brazil) & supply chain management Base diesel engine platform & OEM alliances Global distribution and service network Industry & government relations.

Why Natural Gas Engines for Buses & Trucks? Emissions Leadership Meet 2010 EPA Emissions in 2007 Energy Security Reduced reliance on imported oil Pathway to hydrogen Economic Benefits Continued reliability improvement Improved Efficiency Greatest benefits in high fuel use applications

ALTERNATIVE. EVERY CWI Engine Reliability Improvement

Key Characteristics-Diesel vs. NG Natural Gas Engines Continuous Improvement L 10 GC 8.3C Plus’07 ISL G Emissions Better Reliability Worse Similar Fuel Cost/Mile Worse SimilarBetter Durability Worse Similar LCC Worse Better Timeline

C Gas Plus Reliability Improvement C8.3G / C Gas Plus - Reliability Six Fold Reliability Improveme nt

Customer Profile: Pierce Transit Transit agency for Tacoma/Pierce County, WA Total fleet: 235 buses Purchased 38 C Gas Plus -powered 40’, low- floor buses in % natural gas fleet by 2005 “The C Gas Plus is head-and-shoulders above the other natural gas engines in our fleet.” “Reliability of the natural gas vehicles is very much comparable, and in many cases, better than their diesel counterparts” Ron Shipley, Pierce Transit

Data Sample: Pierce Transit Miles Between Engine- Related Road Failures

Customer Profile: Washington Metropolitan Area Transit Authority Transit agency for Washington, D.C. Total fleet: 1,550 buses Purchased 164 C Gas Plus-powered 40’, New Flyer buses in 2002 And Another 150 in Orion Buses in 2005 "We are exceeding the clear air requirements with the CWI C Gas Plus without compromising reliability“ "From a reliability standpoint the CWI C Gas Plus engines far exceed our goals" Phillip Wallace, WMATA

Data Sample: WMATA Mean Distance Between Failures Miles Diesel Fleet: 1,416 Gas Fleet: 164

NREL/WMATA Test-Miles Between Road Calls Source: National Renewable Energy Laboratory- Washington Metropolitan Area Transit Authority: Compressed Natural Gas Transit Bus Evaluation. NREL/TP – Pages 26/27 Road calls- (on- road failure of in service bus) are a direct indicator of reliability for transit buses

ALTERNATIVE. EVERY 2007 ISL G

HD Emission Standards Continue to Evolve Urban Bus Phase-In Period

Introducing Next Generation Natural Gas Engine technology ISL G will meet 2010 emissions standards ahead of schedule 85% lower NOx than C Gas Plus 34% more torque at idle Improved efficiency=improved fuel economy Maintenance Free Exhaust System

How does the 2007 Cummins Diesel Engine System Work? Charge Air Cooler Throttle EGR Valve EGR Mixer EGR-Cooler VGT Doser DOC T1T1 T2T2 DP Filter

How does the 2007 Natural Gas Engine System Work? Charge Air Cooler Fuel & EGR Mixer EGR-Cooler Wastegate Turbo TWC Natural Gas Throttle NOx = 0.2 g/bhp-hr PM = 0.01 g/bhp-hr ISL G EGR Valve

The Three Key Emission Technologies for 2007 Diesel Engines Cooled Exhaust Gas Recirculation (CEGR) Variable Geometry Turbocharger (VGT) Diesel Particulate Filter (DPF) Cummins Turbo Technologies Cummins Emissions Solutions

The Two Key Emission Technologies for 2007 ISL G Natural Gas Engines Cooled Exhaust Gas Recirculation (CEGR) Three Way Catalyst (TWC) Cummins Emissions Solutions

Next Generation Natural Gas Technology Stoichiometric Featuring Cooled EGR Lowest emissions with use of simple passive TWC Higher efficiency with combustion enhancements 8.9 litre stoichiometric EGR engine with ratings hp Improved clutch engagement torque Higher efficiency/improved fuel economy Reliability/Durability Cummins diesel parts 0.2 NOx in 2007 vs. 1.2 Phase in Provision

What is a 3-Way Catalyst? Simple passive device, like oxidation catalyst Meets EPA Urban Bus useful life requirement Maintenance Free

2007 ISL G - Specifications Maximum Horsepower 320 bhp 300 bhp 280 bhp 260 bhp* 250 bhp* 238 kW 224 kW 209 kW 194 kW 186kW Peak Torque 1000 lb-ft 860 lb-ft 900 lb-ft 660 lb-ft* 730 lb-ft* 1356 Nm 1166 Nm 1220 Nm 895 Nm 990 Nm Governed Speed rpm Engine Displacement 540 cu. in.8.93 L Aftertreatment Three Way Catalyst (Passive) * Note: ISL G 260 and 250 will be available Jan 2008

Peak PowerPeak TorqueTransmission MatchApplication 1300Allison B500 Urban Bus Allison 4500RDS Truck Allison 3500 RDS Truck Allison B400 Urban Bus School Bus Allison 3500 RDS Sweeper Yard Spotter Allison B300Shuttle Bus School Bus 2007 ISL G Ratings Rating Matching Example Note: ISL G 260/250 will be available Jan 2008 ISL G rated speed is the same as ISL diesel, eliminating the need to review and adjust final drive ratios

No Compromise in Performance Preliminary Data Significantly higher low speed torque will improve vehicle acceleration ISL G clutch engagement torque is 34% higher than CWI’s current products

Matched Ratings

2007 ISL G Features Stoichiometric EGR – Uses high EGR rates in combustion process in place of excess air (Lean Burn). Oxygen free exhaust – allows for the use of a three way catalyst Three Way Catalyst Exhaust Aftertreatment – simple passive device, highly effective hydrocarbon, CO, and NOx control. – Maintenance Free Improved torque throughout operating range New Electronic Control Module – provides full monitoring and control of engine sensors, fuel system and ignition system Cummins Cooled EGR –lowers in cylinder temperature and reduces oxygen concentration Low installed weight –(1570 lb wet) Highest power to weight ratio in its class

2007 ISL G Features ISL 8.9L Block Major options shared with diesel product Viscous crankshaft vibration damper and related options Smaller frame, water cooled, wastegate turbocharger Open crankcase breather system Dual potentiometer throttle pedal Capable with 2-pin float type coolant level sensor, or AC powered 3-pin coolant sensor Engine Manufacturers Diagnostic (EMD) interface Increased flow water pump

2007 ISL G Features Single 18.7 CFM or twin 30.4 CFM air compressor with 155 ft-lb drive through torque Increased capacity front end accessory belt drive 2007 ISL G fan drive options are shared with the 2007 ISL diesel SAE No 1 and No. 2 aluminum flywheel options available. Starting motor mounted on cold side of the engine. Exhaust manifolds were redesigned to accommodate EGR system Turbo locations limited by diesel hardware availability. – High mount rear out is only option planned for launch. – Other options based on the diesel manifolds will be added when available.

2007 ISL G – Key Benefits Shared block and components with 2007 ISL diesel –Over 80% parts commonality 5% efficiency Improvement Target –Lean Burn vs. Stoich EGR combustion. 34% more clutch engagement torque –Better performance Transit 280 hp rating torque improved to 900 lb-ft (+6%) Rated speed 2200 rpm –(same as diesel)

OEM Availability Working with all traditional OEM’s on the transition from C Plus and L Plus engines. Transit and Refuse OEM’s have pre production engines for installation engineering –280, 300, 320 ratings –Follows the engineering of the ISL diesel –Similar packaging and cooling requirements 6 cylinder, cooled EGR, air to air aftercooling Commercial availability – June 1, 2007

ISL G Applications/OEMs REFUSEVOCATIONALURBAN TRANSITFUTURE

More information? For more information, contact your Cummins Westport regional sales manager, or local Cummins Distributor Visit