---

Navistar to Sign $2.9 Million Consent Decree

22 October 1998

Navistar to Sign $2.9 Million Consent Decree

    CHICAGO, Oct. 22 -- Navistar International Corporation
today issued the following statement in response to published
reports about a pending consent decree to be signed by on-highway diesel
engine manufacturers, the Department of Justice and the U.S. Environmental
Protection Agency (EPA).
    The settlement will have no significant impact on Navistar's future
earnings.  The $2.9 million cost of this settlement was already included in
the company's third quarter results for the current fiscal year.
    Navistar currently is the only diesel engine manufacturer that has
unconditional EPA approval for its 1999 model engines.  There will be no
impact on International(R) brand products from a performance, cost or design
standpoint.
    Navistar International, with annual sales of $6.4 billion, is the leading
producer of International(R) brand medium and heavy trucks and school buses in
North America, and a world leader in the production of mid-range diesel
engines.  Navistar is the worldwide leader in the manufacture of 160 to 300
horsepower mid-range diesel engines and the developer and manufacturer of
diesel engines for the full size pick-up truck and van markets and selected
industrial and off-highway markets worldwide.