Navistar International Corporation Withdraws Lawsuit against California Air Resources Board

WARRENVILLE, Ill.--(Business Wire)--
Navistar International Corporation (NYSE: NAV) today withdrew a lawsuit it
previously filed against the California Air Resources Board (CARB) following an
agreement with CARB that addresses the issues that prompted the court action.

Navistar had sought a ruling in a San Francisco Superior Court declaring that
CARB was improperly certifying 2010 diesel engines equipped with an
aftertreatment system called SCR that is used to control emissions of oxides of
nitrogen (NOx). The lawsuit charged that CARB was applying certification
requirements which permitted SCR equipped diesel powered trucks to operate for
extended periods without any control of NOx emissions.

The requirements were contained in USEPA 2009 guidance documents which the
lawsuit also charged had been adopted by CARB. A separate court action
challenging USEPA`s 2009 guidance is still pending in Washington D.C. In its
lawsuit against CARB, the Company charged, "The 2009 Guidance allows engines to
operate for multiple and lengthy periods of time with the NOx emission control
SCR Systems turned off, causing uncontrolled NOx to be discharged into the air."
The Company asked the Court to declare that CARB`s adoption of the 2009 Guidance
was null and void.

Navistar dismissed its lawsuit after reaching an agreement with CARB in which
CARB agreed that the 2009 guidance documents are not its policy. CARB also
agreed to convene a public workshop no later than August to address the issues
Navistar raised. Navistar expects the workshop to produce an outcome that will
eliminate the opportunity for SCR equipped trucks to operate with uncontrolled
NOx emissions for multiple and lengthy periods of time.

"We are pleased that CARB is taking this action and we look forward to
participating in the workshop," said Jack Allen, president of Navistar`s North
American Truck Group. "We expect that our agreement with CARB will result in
equal enforcement of the 2010 NOx requirements for all engine makers."

Earlier this month, Navistar`s MaxxForce® DT mid-range diesel engines and
MaxxForce® 13 big bore diesel engines were certified by CARB for model year
2010.

About Navistar

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

Navistar International Corporation
Media contact: Roy Wiley, 630-753-2627
Investor contact: Heather Kos, 630-753-2406
Web site: www.Navistar.com/newsroom

Copyright Business Wire 2010