Navistar Results Expected to Exceed Current Expectations

WARRENVILLE, Ill.--May 1, 2006--Navistar International Corporation , the nation's largest combined commercial truck and mid-range diesel engine producer, said yesterday that earnings for its fiscal year 2006, ending October 31, 2006, are expected to exceed current analyst expectations in spite of challenges tied to higher interest rates associated with recapitalizing its debt structure.

In a presentation at the Bear Stearns' 2006 Global Transportation Conference, Daniel C. Ustian, Navistar chairman, president and chief executive officer, said that the company expects earnings per share for fiscal year 2006 will be higher than the current average estimate of Wall Street analysts of $5.38 per share.

"Given the current strength of the industry, I am confident that Navistar will outperform the current Wall Street estimates," Ustian said. "Our company continues to capitalize on the strength of the industry and to build on our core business through growth in less cyclical markets such as the military."

The company also announced that it will hold a conference call with analysts on June 7, 2006. No financial data will be released at that time, but the company will share certain operating metrics. Specific details about the call will be announced at a later date.

The company also confirmed that KPMG has formally accepted the company appointment as its new independent auditor after completing its customary client acceptance procedures.

KPMG, which will opine on the company's financial statements included in the 2005 Form 10-K, including the prior year restated financial statements, replaces Deloitte & Touche LLP, whose engagement with the company was terminated by the audit committee of the company's board of directors.

Navistar announced on April 7 that it will restate its financial results for the fiscal years 2002 through 2004 and for the first nine months of fiscal 2005. The need for the restatements has been identified in the ongoing review of accounting matters that have prevented the company from filing its fiscal 2005 annual report on Form 10-K and its first quarter 2006 quarterly report on Form 10-Q on time. With the change of independent auditors the timing of the filing of the 2005 Form 10-K, including the prior periods on a restated basis, cannot be determined at this time.

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.