the 05/14/2008

U.S. Army Awards Navistar Defense Multi-Year Truck Contract

truck spare parts Thousands of trucks from Navistar Defense, LLC will support rebuilding and security efforts in

Afghanistan and Iraq as the U.S. Army today awarded Navistar Defense a multi-year contract valued at nearly $1.3 billion. The

U.S. Army TACOM Life Cycle Management Command awarded Navistar Defense a follow-on contract to provide Medium Tactical

Vehicles and spare parts to the Afghanistan National Police, Afghan National Army and the Iraqi Ministry of Defense.

Previously known as International Military and Government, LLC, Navistar Defense is an affiliate of Navistar International

Corporation. Under the multi-year contract, Navistar will supply tactical vehicles built on Navistar’s severe service

International 7000 Series platform. It follows a $430 million contract awarded in 2005 to Navistar by TACOM for more than

2,900 vehicles and spare parts. “This contract award reflects Navistar’s strong performance in providing quality vehicles

and reliable service to the military;” said Archie Massicotte, president, Navistar Defense. “We have stepped up to the

challenge to become a leader. We continue to deliver on our commitment to provide the U.S. military and allies with a

comprehensive value solution that includes military vehicles, and worldwide parts and field service support.” The three-year

contract is valued at $1,282,939,624 for 7,072 vehicles and parts. Approximately half of the order will be delivered during

the first year of the contract with nearly 1,000 units expected to be delivered in fiscal year 2008. Navistar will supply

several vehicle variants, including General Troop Transporter, POL vehicles (petroleum, oil and lubricant), water tankers,

wreckers and hazardous material trucks. In addition, Navistar will supply all required spare parts necessary to support

several years of scheduled maintenance. View Video Log of Joint Light Tactical Vehicle Debut Navistar and teammate BAE

Systems unveiled their Joint Light Tactical Vehicle (JLTV) design in February. JLTV is the U.S. multi-service initiative for

fielding a family of future light tactical vehicles. BAE Systems and Navistar announced their collaboration in October 2007

to take advantage of combined capabilities that most effectively support the JLTV program. To view the video log of the JLTV

unveiling, visit www.navistar.com/newsroom. Navistar International Corporation (Other OTC: NAVZ) is a holding company whose

wholly owned subsidiaries produce International brand commercial and military trucks, MaxxForce brand diesel engines, IC

brand school and commercial buses, and Workhorse brand chassis for motor homes and step vans. It also is a private-label

designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and

diesel engine parts and service.