Navistar International Corporation Completes Acquisition of Largest Diesel Engine Manufacturer in Brazil

   Two-Year-Old Joint Venture Has Proven to Be an Operational and Financial
             Success; Funding to Be Financed by Maxion Cash Flows

    CANOAS, Brazil, Jan. 26 Navistar International Corporation
, parent company of the producer of International(R) brand engines,
trucks, and buses, announced today that it has finalized arrangements to
become the sole owner of Maxion International Motores, a South American engine
company.
    
Maxion International Motores produces a full line of diesel engines
ranging from 95 to 275 horsepower for use by original equipment manufacturers
in Brazil and Argentina and exports a 7.3-liter diesel to Mexico and
Australia.  Customers include Ford Motor Company, General Motors Corporation,
Mercedes Benz and Land Rover in the automotive markets and AGCO in the
industrial market.
  
  Dan Ustian, president of the Engine Group of International Truck and
Engine Corporation, the operating company of Navistar, said the experience of
the joint venture has been both an operational and financial success,
exceeding expectations.  The change in ownership was accomplished by having
Maxion International Motores acquire and retire the shares of other
shareowners.  The acquisition of shares was funded by a loan from a Brazilian
financial institution.  Principal and interest on the loan will be supported
by cash flows from export shipments by Maxion to customers outside of Brazil.
    
"This acquisition is consistent with our corporate commitment to invest in
businesses that provide growth and return to shareowners," Ustian said.  "We
have acquired a company that meets or exceeds our target for return on assets
required to be successful in our industry over the business cycle."
   
 Navistar acquired its initial 50 percent interest from Iochpe-Maxion S.A.
in March of 1999.  After the purchase, a joint venture company, Maxion
International Motores S.A. was formed.
    
"Our acquisition of Maxion International Motores provides Navistar with
the leading diesel engine company in the Mercosul and fits with our business
strategy to be the diesel technology leader, growing with our high volume
customers," Ustian said.  "We intend to provide the Mercosul market, other
countries in South America and other export markets with high-technology
engine products that deliver clean diesel power, performance and durability
for the world community."
   
 Since Navistar's initial purchase, Maxion International Motores S.A. has
broadened its product lineup with the addition of the International 7.3 liter
diesel technology and placed stronger emphasis on product development, quality
and delivery performance to help its customers grow.
    
Maxion has manufacturing facilities located in Canoas, Rio Grande do Sul,
Brazil and Cordoba, Argentina.
   
 Waldey Sanchez, will continue as managing director of Maxion International
Motores.  According to Ustian, the management team headed by Sanchez has
provided excellent stewardship during the past two years of the venture's
existence.  They have effectively implemented and launched new manufacturing
technology and navigated economic challenges within the Latin American
markets, maintaining their leadership position as the largest manufacturer of
diesel engines in Brazil.
    
Navistar International Corporation is the parent company of
International Truck and Engine Corporation, a leading producer of mid-range
diesel engines, medium trucks, school buses, heavy trucks, severe service
vehicles, and parts and service sold under the International(R) brand.  The
company also is a private label designer and manufacturer of diesel engines
for the pickup truck, van and SUV markets.  With world headquarters in
Chicago, Navistar had 2000 sales and revenues of $8.5 billion.  Additional
information can be found on the company's web site at
http://www.nav-international.com .