June 5, 2001

International Opens New School Bus Manufacturing Facility in Tulsa

TULSA, Okla., June 5 -- Navistar International Corporation (NYSE: NAV), which produces commercial trucks, school buses and mid-range diesel engines under the International® brand, today officially opened its new $45 million school bus manufacturing facility here.

(Photo: http://www.newscom.com/cgi-bin/prnh/19991207/CGTU007 )

The nearly 1-million-square-foot plant currently employs more than 400 workers to assemble the International integrated conventional school bus. An integrated chassis design combines the chassis, bus body and school bus part components to deliver customer value in the areas of improved visibility, ergonomics and operating economy.

"This plant is key to keeping our school bus business the leader in the industry," said John Horne, Navistar chairman, president and chief executive officer. "Producing the chassis and the bus body under one roof will enhance the product quality, increase efficiency and improve responsiveness to meet our customers' business needs."

The Tulsa facility, under the operation of American Transportation of Oklahoma LLC, is the first to be built solely for the production of the International integrated chassis school bus. The investment in new equipment will increase efficiency in the manufacturing process by eliminating complexity. Some of the new features include a state-of-the-art paint system and an automated system to cut roof hatches prior to paint and seat installation.

Tulsa Mayor M. Susan Savage said business, government and civic leaders worked together "to make this day a reality for the city of Tulsa and Navistar."

"This bus facility enhances the strength of Tulsa's business climate and workforce. Tulsa will grow and prosper by creating hundreds of high-quality jobs with Navistar, a good business partner and corporate citizen," Savage said. "Tulsa is proud to produce this new integrated school bus, which will set a new standard for safety and quality. Our partnership with Navistar and other civic leaders can serve as a blueprint for delivering this kind of economic benefit."

Thomas R. Cellitti, vice president and general manager of International's bus vehicle center, said the new focused bus facility will enhance the company's capability to produce integrated school buses "which is the wave of the future in the industry and necessary for long-term success in a highly competitive market."

The bus facility is located on the site of a former Douglas Aircraft Company plant that built B-24 bombers for the Army Air Corps during World War II. Interestingly, Navistar owns a diesel engine manufacturing facility in Melrose Park, Ill. that built engines for the B-24 bomber.

Navistar traces its school bus origins to 1907 when the brand was first used on the company's school buses. International is the leader in the school bus industry with a 60 percent chassis market share.

Navistar International Corporation (NYSE: NAV) is the parent company of International Truck and Engine Corporation, a leading producer of mid-range diesel engines, medium trucks, school buses, heavy trucks, severe service vehicles and parts and service sold under the International® brand. The company also is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. American Transportation of Oklahoma LLC is a wholly owned subsidiary of International Truck and Engine Corporation. With world headquarters in Warrenville, a suburb of Chicago, Navistar had 2000 sales and revenues of $8.5 billion. Additional information can be found on the company's web site at http://www.internationaldelivers.com .


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