October 5, 2009

Navistar Defense and Tatra Form Strategic Alliance

Tatra's Proven Chassis and Suspension Systems to Complement Navistar Capabilities

WARRENVILLE, Ill., Oct 05, 2009 (BUSINESS WIRE) -- Navistar Defense, LLC and Tatra, a.s., a heavy-duty truck manufacturer located in Koprivnice, Czech Republic, have signed an agreement to jointly develop, produce and market new military tactical off-road trucks.

The new vehicle will utilize Navistar engines and other components in addition to Tatra's proven backbone-tube chassis design and independent suspension system. Tatra's chassis concept was originally developed in 1923 and today uses swinging half-axles for exceptional off-road mobility and added resistance against chassis wear and tear.

"We believe the Tatra chassis is the most capable off-road suspension system available anywhere in the world," said Archie Massicotte, president, Navistar Defense. "By joining with Tatra, the team is positioned well to compete for new vehicle programs with U.S. and Allied Forces. Upcoming opportunities include the Israel Medium Tactical Truck (MTT) and Canada 10 x 10 wrecker programs."

Under the agreement, a Navistar and Tatra branded truck will be marketed under Navistar Defense in all North American markets including the United States military and Foreign Military Sales financed by the United States government. Tatra will also source parts and components through Navistar's global parts and support network for Tatra trucks delivered in markets outside of North America.

"We are tremendously excited about this strategic alliance with Navistar Defense," said Ronald Adams, board of directors' chairman and CEO, Tatra. "Navistar is a great company with a proven track record of success and a very fine team of professionals covering all disciplines of the truck business."

Tatra and Navistar Defense have also agreed to market and sell new Navistar-Tatra trucks in their respective existing markets around the world. Navistar will manufacture vehicles developed under the alliance.

Tatra, a.s.

Tatra, a.s., located in Koprivnice, Czech Republic, is a long-time manufacturer of heavy-duty, all-wheel-drive, off-road trucks and chassis-cabs. The company's integrated line of commercial and special vehicles can perform in off-road environments as well as on both paved and unpaved roads.

About Navistar

Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.

SOURCE: Navistar

Navistar
Media contact: Elissa Koc, 630-753-2669
Investor contact: Heather Kos, 630-753-2406
Web site: www.Navistar.com/newsroom

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