Navistar Announces Amendment to Tender Offer and Consent Solicitation for Its 6 1/4 % Senior Notes Due 2012

WARRENVILLE, Ill.--March 17, 2006--Navistar International Corporation announced today that it is amending the terms of its previously announced tender offer and consent solicitation for its $400 million in aggregate principal amount of 6 1/4 percent Senior Notes due 2012 (the "6 1/4 percent senior notes"). Navistar is increasing the tender offer consideration for the 6 1/4 percent senior notes to be equal to $1,000.00 for each $1,000.00 aggregate principal amount of 6 1/4 percent senior notes outstanding and eliminating the separate consent payment for the 6 1/4 percent senior notes. Navistar is also extending the expiration time and consent time of the tender offer and consent solicitation for the 6 1/4 percent senior notes to 5:00 p.m., Eastern Standard Time on March 30, 2006 and extending the withdrawal time for tenders and consents with respect to the 6 1/4 percent senior notes, including any previously tendered 6 1/4 percent senior notes, to 5:00 p.m., Eastern Standard Time, March 21, 2006. To date, $128.686 million of 6 1/4 percent senior notes have been tendered in the tender offer.

Upon the later of the withdrawal time and receipt of consents from holders representing at least a majority of its outstanding $400 million in aggregate principal amount of 6 1/4 percent senior notes (the "Requisite Consent Date"), Navistar expects to accept such tendered senior notes for payment as soon as possible, and to make payment for such senior notes promptly thereafter. In addition, Navistar may elect to accept for payment, on one or more additional early payment dates, and promptly thereafter pay the tender offer consideration for 6 1/4 percent senior notes tendered after the Requisite Consent Date and prior to the expiration date.

The tender offer and consent solicitation for the 6 1/4 percent senior notes is being made pursuant to an Offer to Purchase and Consent Solicitation Statement and a related Consent and Letter of Transmittal, dated February 21, 2006, as amended by Amendment No. 1 dated March 17, 2006 (the "offer to purchase"). The exact terms and conditions of the tender offer and consent solicitation are specified in, and qualified in their entirety by, the Offer to Purchase and Consent Solicitation Statement, as amended.

As previously announced, Navistar has received valid tenders of more than a majority of the aggregate principal amount of each of its 9 3/8 percent Senior Notes due 2006 (the "9 3/8 percent senior notes") and its 7 1/2 percent Senior Notes due 2011 (the "7 1/2 percent senior notes"). On March 7, 2006, Navistar executed supplemental indentures relating to the 9 3/8 percent senior notes and 7 1/2 percent senior notes. In addition, Navistar has accepted for payment and paid the tender offer consideration, consent payment and accrued interest with respect to $275.654 million of the outstanding 9 3/8 percent senior notes and $234.374 million of the outstanding 7 1/2 percent senior notes pursuant to the terms and conditions set forth in the offer to purchase. Navistar has also repurchased $7 million of the 9 3/8 percent senior notes held by an affiliate of Navistar. The tender offers and consent solicitations with respect to the remaining outstanding 9 3/8 percent senior notes and 7 1/2 percent senior notes continue to be in effect pursuant to the terms and conditions set forth in the offer to purchase.

Citigroup, Credit Suisse and Banc of America Securities LLC are acting as Dealer Managers for the tender offers and consent solicitations for the senior notes. Questions regarding the tender offers or consent solicitations may be directed to Citigroup Corporate and Investment Banking at 800-558-3745 (toll-free) or at 212-723-6106 or Credit Suisse at 800-820-1653 (toll-free) or at 212-538-7969. Global Bondholder Services Corporation is acting as the Information Agent for the tender offers and consent solicitations for the senior notes. Requests for documents related to the tender offers and consent solicitations may be directed to Global Bondholder Services Corporation at 866-857-2200 (toll-free) or at 212-430-3774.

This announcement is for informational purposes only and is not an offer to purchase, a solicitation of an offer to purchase or a solicitation to consent with respect to any of the notes. The tender offer is being made solely by means of the Offer to Purchase and Consent Solicitation dated February 21, 2006, as amended.

Navistar International Corporation is the parent company of International Truck and Engine Corporation. The company produces International(R) brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Navistar is also a provider of truck and diesel engine parts and service sold under the International(R) brand. A wholly owned subsidiary offers financing services. Additional information is available at: www.nav-international.com.

Forward Looking Statements

Information provided and statements made that are not purely historical are forward-looking. Such forward-looking statements only speak as of the date of this report and we assume no obligation to update the information included in this report, whether as a result of new information, future events or otherwise. Such forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties and assumptions which could have a material adverse effect on the company's liquidity position and financial condition. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many other factors that could cause actual results to differ materially from those in the forward-looking statements. For a further description of these and other factors, see Exhibit 99.1 to our Form 10-K for the fiscal year ended October 31, 2004.