Navistar's South American Engine Company Acquisition Receives Approval from Government Anti Trust Authority

WARRENVILLE, Ill.--Oct. 1, 20057, 2005--Navistar International Corporation announced today that the Brazilian anti-trust regulatory authority has approved its South American engine subsidiary's acquisition of MWM Motores Diesel Ltda (MWM), a major Brazilian diesel engine producer.

The company announced on April 14 that International Engines South America had acquired MWM, but that only minimal synergies could be achieved prior to anti-trust approval. Purchase price was not disclosed.

MWM produces a broad line of medium and high speed diesel engines ranging from 50 to 310 horsepower for use in pick-ups, vans, light and semi-heavy trucks, as well as agricultural, marine and electric generator applications. OEM customers include a number of the most important corporations in the automotive, agricultural and industrial segments, including General Motors, Volkswagen and Nissan. Annual production exceeds 85,000 engines with 2004 revenues for the privately held company of approximately $370 million.

"While we have already seen some benefits in both global sales and sourcing opportunities, final approval allows us to accelerate the full implementation of our other synergistic opportunities," said Daniel C. Ustian, Navistar chairman, president and chief executive officer.

Navistar's South American engine operations are now operated as MWM International Industria de Motores da America do Sul Ltda., with Waldey Sanchez, formerly managing director of International's South American engine business, serving as president and chief executive officer.

Navistar entered the South American market in March 1999, when it acquired a 50 percent interest in a company that was renamed Maxion International Motores S.A. In January 2001, Navistar became the sole owner of Maxion International Motores and shortly thereafter, the company was renamed.

Navistar International Corporation is the parent company of International Truck and Engine Corporation. The company produces International(R) brand commercial trucks, mid-range diesel engines and IC brand school buses and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. With the broadest distribution network in North America, the company also provides financing for customers and dealers. Additionally, through a joint venture with Ford Motor Company, the company builds medium commercial trucks and sells truck and diesel engine service parts. Additional information is available at: www.internationaldelivers.com.

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