May 13, 2004

International Announces Partnership with U.S. EPA To Evaluate New, Low-Cost Diesel Emissions Control Technology

In-Cylinder NOx Control Could Make Light-Duty Diesel More Viable Commercially

MELROSE PARK, Ill., May 13, 2004 (BUSINESS WIRE) -- International Truck and Engine Corporation and the United States Environmental Protection Agency (EPA) announced a partnership to evaluate a new, low-cost diesel emissions control technology that holds great potential for new cars and trucks.

EPA Administrator Mike Leavitt announced the partnership jointly with Daniel C. Ustian, Navistar International Corporation's chairman, president and chief executive officer, at International's engine technical center in Melrose Park.

"We've worked collaboratively with the EPA on emissions control for many years, and it's given us a great advantage in finding low-cost, viable solutions to customers' needs," Ustian said. "This new partnership with the EPA enhances our opportunity to deliver a low-cost diesel solution that will meet 2007 light-duty standards and 2010 heavy-duty standards. This solution in turn will help diesel reach its potential as the one technology that can help America quickly improve its auto mileage, reduce its use of foreign oil and cut the carbon dioxide emissions that have been linked to global climate change. We're proud to partner with the EPA on this historic and groundbreaking initiative."

The new technology, Clean Diesel Combustion, uses in-cylinder control of nitrogen oxides (NOx) to reduce or eliminate entirely the need for aftertreatment related to NOx. Building on the EPA's original development of this technology at its National Vehicle and Fuel Emissions Laboratory in Ann Arbor, Michigan, International will evaluate the technology in its light-duty V6 diesel engine.

At the event, Administrator Leavitt said that this technology shows great potential to further the viability of environmentally friendly diesel power in popular passenger vehicles like SUVs and pickups. Such vehicles would save consumers money, reduce health-related and greenhouse gas emissions, and lower U.S. dependence on imported oil.

The new technology relies on improvements in several diesel engine systems, including fuel injection, air management, turbocharging and combustion. It thus eliminates the need to rely on NOx aftertreatment technologies in order to reach upcoming EPA emissions standards. By reducing the cost of future emissions control, it is expected to make diesel a more viable option for light-duty applications such as automobiles and SUVs.

International's work on the new technology will be the latest in a series of pioneering steps by the company, which developed a smokeless diesel engine in 1989 and was certified in 2001 as meeting 2007 standards for particulate matter (PM) and hydrocarbons through its Green Diesel Technology(R) school buses.

The partnership between EPA and International takes place through a Cooperative Research And Development Agreement (CRADA), a vehicle established by Congress to speed marketplace use of technologies developed by U.S. National Laboratories, such as Clean Diesel Combustion.

International Truck and Engine Corporation is the operating company of Navistar International Corporation (NYSE:NAV). International Truck and Engine is a leading producer of mid-range diesel engines, medium trucks, heavy trucks, severe service vehicles, bus chassis and a provider of parts and service sold under the International(R) brand. The company also is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Additionally, through a joint venture with Ford Motor Company, the company builds medium commercial trucks and sells truck and diesel engine service parts. A subsidiary, IC Corporation, produces integrated school buses. International Truck and Engine has the broadest distribution network in the industry. Financing for customers and dealers is provided through a wholly owned subsidiary of Navistar. Additional information can be found on the company's web site at www.internationaldelivers.com

SOURCE: Navistar International

Navistar International
Roy Wiley (Media), 630-753-2627
Mark Oberle (Investors), 630-753-2406
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