Johnson Matthey Regulatory News (JMAT)

For Release at 1.00 pm on 31st January 2018

Johnson Matthey and Cummins Expand Efforts in Electrification

Cummins Acquires Johnson Matthey's Automotive Battery Systems Business; Sign Agreement to Collaborate on eLNO High Energy Battery Materials

Cummins Inc. (NYSE: CMI) today announced the acquisition of Johnson Matthey's UK automotive battery systems business, a subsidiary of Johnson Matthey that specialises in high-voltage automotive grade battery systems for electric and hybrid vehicles. As part of the acquisition, Cummins and Johnson Matthey also agreed to collaborate on the development of high energy battery materials for commercial heavy duty applications.

The acquisition and collaboration agreement are an important step for Cummins and Johnson Matthey. The acquisition of the automotive battery systems business allows Cummins to expand its electrification and energy storage capabilities in its efforts to be a global leader in electrified power. Johnson Matthey is able to focus on developing high energy battery materials, including its class-leading enhanced lithium nickel oxide (eLNO) product, for transport applications within its overall technology portfolio.

The parties intend to collaborate on the development of new products with enhanced performance characteristics for commercial applications relying on the unique and deep expertise of each company.

"The addition of Johnson Matthey Battery Systems' technical expertise and customer base in markets that are more rapidly adopting electrification further positions us as a global energy storage supplier," said Tom Linebarger, Chairman and CEO, Cummins Inc. "By combining our electrification capabilities, portfolio of diverse power solutions, and global network, Cummins is uniquely positioned to lead in electrification. What differentiates us is our ability to help customers succeed with high quality products across the spectrum of power solutions they use, whether it's electric, diesel, natural gas or other energy solutions."

"This collaboration with Cummins is an important step for us", said Robert MacLeod, Chief Executive, Johnson Matthey. "It will enable us to grow our position in high energy battery materials, particularly for heavy duty applications, and apply our chemistry expertise to develop new products that will give our customers, and ultimately consumers, the performance they demand from electrically powered vehicles. In divesting our automotive battery systems business to Cummins we can focus on our strategy of expanding our eLNO platform and developing commercial battery materials for the full range of transport applications."

In October 2017, Cummins announced the acquisition of Brammo, which is known for designing and developing low-voltage battery packs for mobile and stationary applications. With the addition of JMBS' high-voltage battery expertise, Cummins now has capability across the entire range of energy storage options.

As one of Europe's largest lithium-ion battery system suppliers, the automotive battery systems business has 50 employees and is based in Milton Keynes, United Kingdom.

The acquisition was signed and closed on 31st January. Cummins will continue to explore other opportunities to add electrification capabilities as it prepares for delivery of electrified powertrains to customers in 2019.

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About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, we improve the function, performance and safety of our customers' products. Our science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet's natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with our network of customers and partners to make a real difference to the world around us. For more information, visit www.matthey.com

About Cummins Inc.

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 55,400 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 7,400 dealer locations. Cummins earned $1.39 billion on sales of $17.5 billion in 2016. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at www.twitter.com/cummins and on YouTube at www.youtube.com/cumminsinc.