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28. June 2007

International Engine Group Announces Sourcing for MaxxForce(TM) Big Bore Engine Blocks

International
Truck and Engine Corporation, a Navistar company (Other OTC: NAVZ), today
announced that its Brazilian subsidiary MWM International Motores, and
Brazil-based supplier Tupy, will provide compacted-graphite iron (CG Iron)
cylinder blocks for the new MaxxForce(TM) 11 and MaxxForce(TM) 13 big bore
diesel engines.

Tupy will cast the advanced CG Iron cylinder blocks at its plant in Sao
Paulo, Brazil, and MWM International will machine the blocks at its Santo
Amaro plant, also in Sao Paulo. The machined blocks will be shipped from
South America to International's new engine plant in Huntsville, Ala.,
where the MaxxForce(TM) big bore engines will be assembled.

"Our ability to source globally and utilize MWM International for the
machining of this new innovative block design demonstrates our commitment
to integration and growth as a global company," said Persio Lisboa, vice
president, purchasing and logistics, International Engine Group. "This also
allows us the opportunity to leverage our assets to serve the North
American market, while creating a competitive advantage for our
MaxxForce(TM) big bore engines."

Waldey Sanchez, president and CEO, MWM International, added: "We knew
the big bore team was focused on finding the highest-quality machining
source that was cost-competitive globally. Our Santo Amaro plant offers
cost, quality, and logistical advantages that helped us get selected over
other worldwide competitors. We are very proud to have been chosen."

In late 2006, Huntsville was selected as the site for the assembly of
the new engines. To accommodate the work, a new state-of-the-art plant is
being built near International's current manufacturing facility in
Huntsville. Production in Huntsville will begin in spring 2008. Initial
engines will be partially assembled in Germany and finished and trimmed in
Huntsville.

The MaxxForce(TM) 11 and MaxxForce(TM) 13, which will provide owners
and operators with outstanding fuel economy, excellent power
characteristics, low noise vibration and harshness, and high strength
without added weight, will be offered in International(R) ProStar(TM)
line-haul tractors, TranStar(TM) regional-haul tractors, and WorkStar(TM)
severe service vehicles in the U.S. and Canada beginning later this year.

"The MaxxForce(TM) 11 and MaxxForce(TM) 13 will be the first heavy-duty
diesel engines in North America to leverage advances in manufacturing
technology to offer an engine block cast from CG Iron," said Jacob Thomas,
vice president, big bore business unit. "The use of this material allows us
to provide a high-strength block without added weight -- a valuable
attribute for our truck customers."

Created by a very precise procedure, which involves adding magnesium to
molten gray iron at a specific point in the casting process,
compacted-graphite iron offers significant advantages over traditional gray
iron. CG Iron is 70 percent stronger and 40 percent stiffer, and provides
double the fatigue limit of gray iron. In addition, CG Iron's unique
molecular structure resists fractures.

International is a leading diesel-engine maker. In North America, it
has nearly a 50 percent share of the diesel pickup engine market and 40
percent of the market for medium-duty commercial trucks and buses. In South
America, it accounts for nearly 40 percent of all diesel engines produced.
For information on MaxxForce(TM) big bore engines and the entire line
of MaxxForce(TM) commercial diesel engines, visit Öffnet einen externen Link in einem neuen Fensterhttp://www.maxxforce.com.

The Web site for MWM International is Öffnet einen externen Link in einem neuen Fensterhttp://www.nav-international.com.br/.
A wholly owned subsidiary of Navistar International Corporation (Other
OTC: NAVZ), International Truck and Engine Corporation is a leading
producer of medium trucks, heavy trucks, severe service vehicles, mid-range
diesel engines, parts and service. International and its affiliates sell
their products, parts and services through a network of nearly 1,000 dealer
outlets in the United States, Canada, Brazil and Mexico and from more than
60 dealers in 90 countries throughout the world. Additional information is
available at: Öffnet einen externen Link in einem neuen Fensterhttp://www.navistar.com.

Photos of the new MaxxForce(TM) 11 and MaxxForce(TM) 13 diesel engines
are available at Öffnet einen externen Link in einem neuen Fensterhttp://www.maxxforce.com/news-room.

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