U.S. Marine Corps Selects International Truck and Engine Corporation as Finalist for Mine-Resistant Ambush Protected (MRAP) Vehicle Contract.

Navistar Company Vying for Billion Dollar Military Contract

WARRENVILLE, Ill. -- With ever-present danger military forces in Iraq and Afghanistan due to improvised explosive devices (IEDs) and mines, the U.S. Military is looking for a new fleet of vehicles to improve crew survivability and enhance mission accomplishment. International Military and Government, LLC, a wholly owned subsidiary of International Truck and Engine Corporation, has been named as a finalist for the estimated $1 billion contract to provide up to 4,100 Mine-Resistant Ambush Protected (MRAP) vehicles to the U.S. Marine Corps.

International Truck and Engine is the principal operating company of Navistar International Corporation (NYSE:NAV).

"International Truck and Engine offers a military vehicle that significantly enhances crew survivability while maintaining its maneuverability and performance in the field," said Dan Ustian, President and Chief Executive Officer of Navistar International Corporation. "After extensive development by International and its armoring partner, we're ready to deliver the first units to the U.S. Marine Corps for testing and evaluation."

International will deliver four units for testing in March 2007. The U.S. Marine Corps selected International as a finalist based on the following factors:

* Crew Survivability/Armoring Technology - Because International's commercial trucks are built to carry heavy loads over long distances, they are designed to accommodate the weight of protective armor built into the truck design. The truck can better perform by protecting soldiers while maintaining its maneuverability in dangerous environments. International's collaboration with armoring expert Plasan Sasa provides unparalleled technology to deliver armor resistance to mines and IEDs. Using Plasan Sasa's armoring expertise, combined with installation skills at its armor integration center in Mississippi, International has assembled a superior team to develop armored military vehicles.

* Production Capability/Cost - With numerous truck and engine manufacturing plants in North America, International has the production capacity to produce quality trucks quickly and cost-effectively. In fact, International has 27 percent combined market share in the North American commercial truck industry, producing more than 158,000 trucks in 2006. International has a strong reputation for trucks that have long life-cycle value and global parts and service support.

* Military History - International has been building trucks for 100 years, including trucks that served important roles during World War I, World War II and other military conflicts. More recently, International has been involved in the engine re-powering initiative for the Humvee, armoring projects with the International MXT-MV, and the Future Tactical Truck System (FTTS) bid for the U.S. Army. International has more than 3,000 military trucks currently in service, including armored heavy haul trucks serving in the Middle East. These trucks were delivered less than six months after the contract award and have been supported with quick, responsive after-sales service in theater.

"The design of International's trucks provides the military with a wider range of options for missions and better overall armoring capability," said Archie Massicotte, President of International Military and Government, LLC. "Plus, we have the global parts and service support essential to supporting a fleet of this size on the battlefield. We've been supporting the men and women of our Armed Forces for almost 90 years and they deserve the best quality military vehicles available today."

In its recent vehicle contracts with the U.S. Military, International has demonstrated a passionate dedication to meeting aggressive delivery schedules.

"We take great pride in producing quality vehicles within robust production schedules and look forward to serving our government with prompt delivery of these important vehicles," said Massicotte.

International's trucks utilize a modular concept to armor its trucks for the MRAP bid. The design positions the v-shaped hull crew compartment on top of International's chassis. The truck chassis is typically used for rugged, durable, off-highway/on-highway applications. The v-shaped hull helps to deflect any blasts from underneath the truck to dissipate around the crew area, minimizing damage.

About International Military and Government, LLC

International Military and Government LLC is a wholly-owned subsidiary of International Truck and Engine Corporation. IMG was established to focus on military and government opportunities. Additional information is available at www.InternationalMilitaryandGovernment.com.

About International Truck and Engine Corporation

International Truck and Engine Corporation is a leading producer of medium trucks and heavy trucks for various markets including over-the-road, pickup and delivery, construction, utility and governments. Based in Warrenville, Ill., International offers its products, parts and services through a network of nearly 1,000 dealer outlets North America and from more than 60 dealers in 90 countries throughout the world. Additional information is available at www.InternationalTrucks.com.