Navistar Issues $400 Million in Senior Notes as Debt Offering Is Oversubscribed

    WARRENVILLE, Ill., May 31 Navistar International
Corporation announced today that its private placement of a new
debt issue was oversubscribed and, as a result, the company has issued
$400 million of five-year senior notes.
    Initially, the company had planned to raise $300 million, which was to be
used for debt repayment, to fund ongoing capital development programs and for
general corporate purposes.  The new notes were sold in a 144A offering and
are priced to yield 9.375 percent.
    John R. Horne, Navistar chairman, president and chief executive officer,
said the over subscription is a clear reflection of the confidence that the
investment community has in the programs and plans that the company is putting
in place to assure future growth and to achieve its vision to become the best
truck and engine company.
    "Our company is on the move.  Already this year we have announced the most
significant joint venture in our history, held the biggest new product
introduction in the past 25 years and finalized the acquisition of the largest
diesel engine company in South America," Horne said.  "Next week we will open
our new integrated school bus plant in Tulsa, Okla. and we are preparing our
next generation of clean diesel engines for production later this year. "
    In February, Navistar and Ford Motor Company announced that they intend to
form a joint venture to build commercial trucks in Mexico and distribute
service parts.  The two companies will also develop new products as well as
explore opportunities for greater cooperation in diesel engines for potential
applications in Ford's full range of truck products.  Also in February, the
company introduced the industry's first High Performance truck with new models
scheduled to roll out every few months over the next two years.  The company
also completed the arrangements to become the sole owner of Maxion
International Motores, which produces a full line of diesel engines for use by
original equipment manufacturers.
    J.P. Morgan Securities Inc. and Credit Suisse First Boston were joint
book-running managers of the private placement.
    The securities offered have not been registered under the Securities Act
of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.

    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
Warrenville, a suburb of 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.internationaldelivers.com .

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