Navistar Completes Acquisition to Expand into Recreational Vehicle, Step-Van Chassis Market

WARRENVILLE, Ill.--Aug. 2, 20052, 2005--Navistar International Corporation announced today that its operating company, International Truck and Engine Corporation, has completed the acquisition of Workhorse Custom Chassis, a leading manufacturer of chassis for motor homes and commercial step-van vehicles, and Uptime Parts, a parts distribution network that supplies commercial fleets and RV dealers.

Plans for the acquisition were first announced in July. Terms of the all-cash deal were not disclosed.

Both Workhorse and Uptime Parts were profitable in calendar year 2004 with combined sales of approximately $480 million. The acquisition is expected to be accretive to Navistar earnings in fiscal 2006 and enables the company to immediately become a leading player in the growing Class A RV chassis market, and provides the opportunity to grow its diesel engine and parts sales.

Navistar International Corporation is the parent company of International Truck and Engine Corporation. The company, through its affiliates, produces International(R) brand commercial trucks, mid-range diesel engines and IC(R) brand school buses and is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. A wholly owned subsidiary offers financing services. Additional information is available at www.nav-international.com.

Forward-Looking Statements