Navistar-UAW Labor Pacts Extended

WARRENVILLE, Ill., Oct. 1, 2002; International Truck and Engine Corporation and the United Auto Workers union have agreed to extend up to five days their current labor agreements that were scheduled to expire at midnight, September 30, it was announced today.

The extension is subject to termination with 24 hours advance notice by either the company or the union. International Truck and Engine is the operating company of Navistar International Corporation .

International Truck and Engine and the UAW began negotiation towards new labor agreements in late July in Louisville, Ky., which was selected by mutual agreement as the site for the 2002 talks. Truck and diesel engine production will continue at current levels during the contract extension.

The UAW represents approximately 7,200 employees in manufacturing plants in Indianapolis, Ind., Melrose Park, Ill. and Springfield, Ohio; parts distribution centers in Atlanta, Baltimore and Dallas and at the truck technical center in Fort Wayne, Ind.

Dan Ustian, Navistar president and chief operating officer, said the company hopes to achieve an agreement that provides it with an affordable cost structure that includes production flexibility and manageable health care costs.

"We are looking for an agreement that represents a shared commitment by our employees and management to ensure the future success of the company," Ustian said. "Our goal is to get a contract that makes us competitive."

Headquartered in Warrenville, Illinois, International Truck and Engine Corporation is a leading producer of mid-range diesel engines, medium trucks, heavy trucks, severe service vehicles and a provider of parts and service sold under the International® brand. IC Corporation, a wholly owned subsidiary, produces school buses. The company also is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. International Truck and Engine has the broadest distribution network in the industry. Financing for customers and dealers is provided through a wholly owned subsidiary. Additional information can be found on the company's web site at www.nav-international.com .