International Opens New School Bus Manufacturing Facility in Tulsa

   Integrated Conventional Models Built From Start to Finish Under One Roof

    TULSA, Okla., June 5 Navistar International Corporation
, which produces commercial trucks, school buses and mid-range
diesel engines under the International(R) brand, today officially opened its
new $45 million school bus manufacturing facility here.
    
    The nearly 1-million-square-foot plant currently employs more than 400
workers to assemble the International integrated conventional school bus.  An
integrated chassis design combines the chassis, bus body and school bus part
components to deliver customer value in the areas of improved visibility,
ergonomics and operating economy.

    "This plant is key to keeping our school bus business the leader in the
industry," said John Horne, Navistar chairman, president and chief executive
officer.  "Producing the chassis and the bus body under one roof will enhance
the product quality, increase efficiency and improve responsiveness to meet
our customers' business needs."

    The Tulsa facility, under the operation of American Transportation of
Oklahoma LLC, is the first to be built solely for the production of the
International integrated chassis school bus.  The investment in new equipment
will increase efficiency in the manufacturing process by eliminating
complexity.  Some of the new features include a state-of-the-art paint system
and an automated system to cut roof hatches prior to paint and seat
installation.

    Tulsa Mayor M. Susan Savage said business, government and civic leaders
worked together "to make this day a reality for the city of Tulsa and
Navistar."

    "This bus facility enhances the strength of Tulsa's business climate and
workforce. Tulsa will grow and prosper by creating hundreds of high-quality
jobs with Navistar, a good business partner and corporate citizen," Savage
said.  "Tulsa is proud to produce this new integrated school bus, which will
set a new standard for safety and quality. Our partnership with Navistar and
other civic leaders can serve as a blueprint for delivering this kind of
economic benefit."

    Thomas R. Cellitti, vice president and general manager of International's
bus vehicle center, said the new focused bus facility will enhance the
company's capability to produce integrated school buses "which is the wave of
the future in the industry and necessary for long-term success in a highly
competitive market."

    The bus facility is located on the site of a former Douglas Aircraft
Company plant that built B-24 bombers for the Army Air Corps during World War
II. Interestingly, Navistar owns a diesel engine manufacturing facility in
Melrose Park, Ill. that built engines for the B-24 bomber.

    Navistar traces its school bus origins to 1907 when the brand was first
used on the company's school buses.  International is the leader in the school
bus industry with a 60 percent chassis market share.