Press Release

Navistar Announces Tentative Contract Agreement with CAW

10/23/96

Navistar, CAW Reach Tentative Agreement

CHICAGO, Oct. 21 -- Navistar International Corporation
and the Canadian Auto Workers (CAW) today reached a
tentative agreement four days before the current contract was to
expire at the company's assembly plant in Chatham, Ont.

Ratification of the tentative agreement is scheduled in Chatham on
October 27, 1996 by CAW Local 127. The Chatham Assembly Plant of
Navistar employs approximately 1,600 workers, with 1,300 of them
represented by CAW Local 127.

No details of the tentative agreement will be released prior to the
ratification process.

Navistar Chairman, President and Chief Executive Officer John R. Horne
said, "While the agreement is tentative, we are pleased with the
initiative taken by the leadership of Local 127 and the management
team in Chatham to address issues facing this company, including
achieving competitiveness within the framework of our five-point truck
strategy."

Earlier this year in June, the company announced its five point truck
strategy: emphasizing new product development; focusing its
facilities; decomplexing its trucks; expanding its presence in Mexico;
and achieving competitive wage, benefits and productivity levels.

Navistar International Corporation is the North American market share
leader in combined bus and medium and heavy duty truck sales. The
company also is a leading worldwide producer of diesel engines in the
160 to 300 horsepower range.