January 27, 2000

Navistar's Green Diesel Technology Allows California Air Resources Board to Examine Clean-Diesel Option

Demonstration Engine in School Bus Puts Brakes on Pollution

Demonstration Engine in School Bus Puts Brakes on Pollution

LOS ANGELES, Jan. 27 -- Navistar International Corporation (NYSE: NAV) today demonstrated to the California Air Resources Board and public its ability to significantly reduce harmful emissions and contribute to cleaning up California's air.

An International® brand school bus equipped with the company's low-emission engine and advanced aftertreatment control, using an ultra-low sulfur fuel, produced none of the smoke or fumes usually associated with diesel.

"We want to work with the ARB and the oil industry to preserve the diesel option. The benefits of diesel power in California can continue to contribute to the state, if we work together to solve the environmental challenge," said Patrick Charbonneau, vice president of engine engineering for Navistar's engine and foundry group.

Green Diesel Technology(SM) system tests show particulate matter emissions reduced by more than 90 percent, falling within the stringent standards proposed by the U.S. Environmental Protection Agency and the California Air Resources Board for compliance between 2007 and 2010. Navistar's system has better particulate emissions than similar vehicles using natural gas; and its gaseous hydrocarbons are reduced below measurable levels, providing a diesel solution to the toxic emission health issue.

Even before the availability of Green Diesel Technology, new diesel engines have already been dramatically improved. Modern diesel engines emit approximately 40 percent less carbon dioxide, which is linked to global warming and use 40 to 60 percent less fuel per mile than similar vehicles burning gasoline.

International® is a registered trademark of Navistar International Corporation headquartered in Chicago. In addition to selling heavy and medium trucks and school buses under the International brand, Navistar produces mid-range diesel engines sold under the International brand and is a private label designer and manufacturer of diesel engines for the truck and van markets. Sales and revenues in fiscal 1999 totaled $8.6 billion. Additional information can be found on the company's web site at www.internationaldelivers.com.


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