Navistar Defense Adds New Foreign Business with First Canadian Military Contract

Award is Part of Canada`s MSVS Project to Strengthen Domestic Operations
WARRENVILLE, Ill.--(Business Wire)--
Navistar Defense, LLC received its first Canadian military contract to date to
provide the Canadian Department of National Defence with Military Commercial off
the Shelf (MILCOTS) vehicles. The vehicles are the first element of Canada`s
Medium Support Vehicle System (MSVS) project, which will invest in medium sized
logistics trucks to support domestic operations and sustain deployed forces. The
C$275 million (~US$231 million) award will provide up to 1,300 vehicles and
utilize the Canadian organization and dealer network of Navistar Canada, Inc for
training, delivery, parts and maintenance support.

This award positions the company well for future opportunities under MSVS such
as the replacement of Standard Military Pattern (SMP) medium lift trucks and
trailers. As part of the MSVS project, SMP replacement is estimated to be more
than 1,500 units.

"MILCOTS vehicles provide a strong area of growth for Navistar," said Archie
Massicotte, president, Navistar Defense. "While our militarized commercial off
the shelf trucks are built to help effectively perform various missions, our
existing Canadian dealer network will provide quick parts and maintenance
support for domestic missions."

The MILCOTS order will allow the Canadian military to customize vehicle variants
based off the International WorkStar platform. Optional upgrades and additional
military components will let Canada further tailor its vehicles for domestic
mission use. Under the multi-year contract, six vehicle variants will be
provided including General Troop Transporters, ISO (International Organization
for Standardization) container transporters, as well as additional equipment
such as augers and cranes.

Navistar`s extensive Canadian dealer network includes 93 dealerships.
Approximately 600 units of the MILCOTS order will be delivered during fiscal
year 2009 with the remaining units to be delivered in fiscal year 2010.

Navistar will continue to pursue new foreign military sales as part of its
growth strategy. Since 2004, the company has won contracts to provide more than
7,000 units to U.S. allies such as Israel, Taiwan and the United Kingdom. In
late 2008, the U.K. selected Navistar to compete in the next phase of its
Operational Utility Vehicle Systems (OUVS) program. Navistar is also in
negotiations with the U.K. to provide a portion of the needed Tactical Support
Vehicles (TSV) for the Husky division. The U.K. Ministry of Defence announced in
late October that it had earmarked £350 million (~US$530 million) for 400 TSV
units.

Navistar Defense is an affiliate of Navistar International Corporation (NYSE:
NAV), a holding company whose subsidiaries and affiliates produce International®
brand commercial and military trucks, MaxxForce brand diesel engines, IC brand
school and commercial buses, and Workhorse 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 parts and service. Another affiliate offers financing
services. Additional information is available at www.Navistar.com/newsroom.

Navistar International Corporation
Media Contact:
Tim Touhy, 630-753-3869
or
Investor contact:
Heather Kos, 630-753-2406
Web site:
www.Navistar.com/newsroom

Copyright Business Wire 2009