December 21, 2000

International Truck and Engine Lauds EPA Decision on Low Sulfur Fuel; Says Diesel, With Near Zero Emissions, Can Be Most Environmentally Beneficial Engine Technology

CHICAGO, Dec. 21 -- In limiting the sulfur content of diesel fuel to 15 parts per million or less starting in 2006, the U.S. Environmental Protection Agency affirmed government's recognition of the role of diesel in providing a clean air solution.

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That's the view taken by International Truck and Engine Corporation, the first engine and bus maker to announce a new clean diesel solution for the nation's school buses.

"The EPA today affirmed that clean diesel fuel is essential to delivering on diesel's promise," said John R. Horne, chairman, president and chief executive officer of Navistar International Corporation (NYSE: NAV). "This action reflects the reality that diesel is not only the most efficient type of internal combustion engine, but can be environmentally beneficial as well."

The new EPA regulations, which were finalized by EPA Administrator Carol Browner, set a maximum sulfur level for highway-use diesel of 15 parts per million (ppm) beginning in September 2006. The new rules also require near zero emission standards for heavy-duty diesel engines.

"We strongly support EPA's reduction of diesel fuel sulfur levels, which will enable the aftertreatment technologies that are required to achieve the agency's challenging new emissions standards," Horne said. "With a target of near zero emissions, International is committed to the significant investment in research and development that will be required to meet these new engine standards."

In May, International became the first maker of school buses to announce that it would produce a bus that could meet the EPA's 2007 standards for particulate matter (PM), years ahead of that deadline. Starting in mid-2001, the new International buses, using International® Green Diesel Technology, will be available in California and anywhere else where ultra-low-sulfur diesel fuel is available.

"Our advanced Green Diesel Technology delivers benefits that surpass alternative fuels, including natural gas, in the reduction of particulate matter and hydrocarbons," said Horne. "Through this important step, the EPA is clearing the way for new technologies that will make diesel even cleaner in the future."

International has always been a leader in developing new diesel technology that improves engine performance while addressing environmental impact. In 1989, International released the first smokeless diesel engine -- five years ahead of the EPA's deadline. In 1996, International became the first diesel engine manufacturer to show it could meet federal emissions standards that are set for 2004. In 1998, the EPA gave International 100 percent approval for its 1999 model engines in meeting emissions standards. International was the only U.S. diesel engine manufacturer to receive such approval at that time.

International Truck and Engine Corporation is the operating company of Chicago-based Navistar International Corporation (NYSE: NAV), which had 2000 sales and revenues of $8.5 billion. International Truck and Engine is 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. Additional information can be found on the company's Web site at . SOURCE Navistar International Corporation

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