Navistar to Restate Results for the First Nine Months of Fiscal 2008

WARRENVILLE, Ill. December 24, 2008: Navistar International Corporation

• Reported net income for the nine months expected to increase by $50 million to $70 million
• Expects to file 10-K on time

Navistar International Corporation announced today that it will restate its financial results for the nine months ended July 31, 2008. As a result, the company expects to increase reported net income by $50 million to $70 million ($0.68 to $0.95 per diluted share) for the nine months ended July 31, 2008.

Navistar continues to affirm its guidance for fiscal 2008 of projected net income in the range of $467 million to $548 million and diluted earnings per share of $6.35 to $7.45, excluding charges for impairment of long-lived assets and related charges associated with certain assets in its Engine segment⁽¹⁾. Navistar’s Truck segment performed for the year as anticipated; however, the profitability occurred earlier in the current fiscal year than previously expected.

The need for the restatement relates to overstatement of costs of products sold and the understatement of inventories and accounts payable in Navistar’s Truck segment. Navistar expects to file one or more amended quarterly reports prior to filing its 2008 annual 10-K. The restatement is not expected to delay the company’s year-end filing for fiscal 2008 scheduled for December 30.

Navistar International Corporation is a holding company whose subsidiaries and affiliates produce InternationalŽ brand commercial and military trucks, MaxxForce™ brand diesel engines, IC brand school and commercial buses, and WorkhorseŽ 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. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.

SEC Regulation G

⁽¹⁾ On November 12, 2008, Navistar filed a Form 8-K with the Securities and Exchange Commission disclosing impairment charges related to its Vee engine business unit. This work is ongoing, but the Company estimates that it will record expenses ranging from $375 to $430 million, the majority of which are expected to be recognized in the fourth quarter of fiscal 2008. Our guidance excludes these charges and can be reconciled to the applicable U.S. generally accepted accounting principles (GAAP) measures as follows:

($ Millions, except per share data)				Net Income				Diluted EPS
Non-GAAP guidance				$467 to $548				$6.35 to $7.45
Less: Impairment and other related charges				($430) to ($375)				($5.85) to ($5.10)
GAAP				$37 to $173				$0.50 to $2.35