Ad Hoc Committee of Holders of Navistar International Corporation's Senior Notes Will Negotiate Terms

NEW YORK--Feb. 1, 20064, 2006--The Ad Hoc Committee of Senior Noteholders of Navistar International Corporation, whose members are financial institutions who are holders of Navistar's $250 million issue of 7 1/2% Senior Notes due 2011 and its $400 million issue of 6 1/4% Senior Notes due 2012, announced today that it has advised Navistar that its members now collectively hold substantially more than a majority in principal amount of each of those two series of notes and that it is prepared to negotiate with the Company to address the Company's inability to meet its financial reporting obligations under the respective Indentures for these Notes. The Committee previously had caused the Trustee for the Notes to issue a notice of that default under the respective Indentures for the notes, which the Company has acknowledged that it received on February 3, 2006.

J. Andrew Rahl, Jr. of Anderson Kill & Olick, P.C., counsel to the Ad Hoc Committee, commented that "The Ad Hoc Committee looks forward to having a constructive dialogue with the Company and is hopeful that these discussions will lead to a productive result for all concerned."