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	Fleetguard Inc. Receives 2005 Frost & Sullivan Award for Market Leadership
	6 MAY 05 -- Fleetguard Inc., the global filtration, exhaust, coolant and chemical specialist for diesel and gas powered equipment, has been awarded the 2005 Market Leadership Award by Frost & Sullivan for its technological advancements in oil filtration design and for leading the aftermarket in total sales volume and revenue. Frost & Sullivan is a global growth consulting company. The award is given annually to the company that has best shown market share leadership through the implementation of market strategy. "Fleetguard has displayed excellence in all areas of the market leadership process - including the identification of market challenges, market drivers and restraints, strategy development, and the methods of addressing these market dynamics," said Dean Miller, Best Practices Director for Frost & Sullivan. "Plus, Fleetguard has continually demonstrated solutions for monitoring market changes and for implementing superior market strategies. By utilizing these strategies, Fleetguard has established itself as the market share leader in its industry." In the highly competitive oil filter aftermarket, Fleetguard consistently produced superior financial results. Fleetguard market share, particularly in the heavy-duty segment, has continued to grow even during periods of economic recession. Growth rates of three percent in 2001-02 and between six and nine percent in subsequent years have outpaced the industry as a whole and are evidence of high conversion rates to the Fleetguard brand. "Fleetguard offers tremendous advantages over our competitors in the Class 6-8 North American aftermarket, including sales and marketing, distribution and engineering capabilities, and technological improvements," said Pamela Carter, President of Fleetguard. Frost & Sullivan estimates that Fleetguard controlled 32 percent of revenues in the Class 6-8 North American oil filters aftermarket in 2004 in an industry marked by low profit margins and strong competition from reverse engineers. The company expects that market to continue to grow at a compound annual growth rate of 7.5 to 11.1 percent through 2011. The figure below shows Fleetguard's recent market growth compared to the industry as a whole. Miller pointed out that Fleetguard is not the industry leader only in terms of sales. The company's technological innovations have extended the service life of its products and resulted in cost savings for its customers. "Fleetguard oil filters are used more often by large truck fleets than any other brand. In 2005, the company will introduce to the aftermarket a sleek, new, all-plastic filter that reduces the number of component parts. This move is also consistent with Fleetguard's ongoing vertical integration efforts. By producing its own manufacturing commodities, the company reduces its costs and improves its engineering capabilities," said Miller. Carter said the company has identified the key drivers of this market and positioned itself to lead the competition over the forecast period. "The increasing demand for on-highway freight hauling, new engine designs, and more aggressive maintenance schedules will increase demand for Fleetguard products in the future. We are targeting new products to the truck market, internally sourcing raw material needs to avoid shortages, and expanding our distribution structure to make it easier for customers to purchase Fleetguard filtration products," said Carter. Fleetguard enjoys a broad, multi-channel distribution system that includes sole-source supply contracts with major original equipment manufacturers. It dominates the original equipment service channel, with more than 15,000 dealer/distribution outlets worldwide. With four distribution centers in the United States and Canada, product is readily available to the independent aftermarket. Because of Fleetguard's relationships with major original equipment manufacturers, the company is positioned better than any of its competitors to design products that meet the airborne emissions standards of the U.S. government, Miller explained. This is an important advantage, since many of the newly designed engines re-circulate exhaust instead of discharging it. This process creates additional soot within the engine and puts additional pressures on oil filters to help keep the engine clean. "Fleetguard is recognized by competitors as a leader in the development of new oil filters and admired for its high sales volumes and revenues. It has earned the loyalty of fleet managers, professional installers, and truck owners because of the reliability and availability of its products. Fleetguard knows this market better than its competitors, and with its strong research and engineering capabilities, it will be even more difficult in the future for Fleetguard competitors to replicate its premium filtration products," said Miller. "The award is a fitting recognition of a job well done." Fleetguard Inc. is a wholly owned business unit of Cummins Inc. and the world's leading designer and manufacturer of heavy-duty air, fuel, hydraulic and lube filtration, chemicals and exhaust system technology products for diesel and gas powered equipment. Fleetguard cares about maintaining a cleaner, healthier, and safer environment. Going beyond compliance, Fleetguard proactively seeks improvements to products and processes and offers environmentally friendlier product choices for all major engine systems. Fleetguard's homepage on the Internet can be found at www.fleetguard.com. In North America, customers can call Fleetguard® Customer Assistance at 1-800-22FILTER (1-800-223-4583) for more information.