Navistar International Corporation to Delay Filing Form 10-K

Because there has been no determination when the ongoingdiscussions with Deloitte and Touche LLP will be concluded, thecompany said it cannot determine when it will be able to file its Form10-K. The company and Deloitte are reviewing a number of open itemsincluding some complex and technical accounting issues and the companycannot determine the impact the resolution of these issues may have,if any, on the per share earnings guidance issued last September. Thecompany's Form 10-K for fiscal 2005 will be filed with the Securitiesand Exchange Commission as soon as practical.

In mid December 2005, a key member of the Deloitte audit team wenton an unexpected, extended medical leave. A new audit team fromDeloitte is now working to complete the year-end audit for fiscal2005.

Daniel C. Ustian, Navistar chairman, president and chief executiveofficer, said the results of 2005 go well beyond financial numbers. Hesaid that production, retail sales and market share numbers in 2005met the company's expectations. Unaudited year end manufacturing cashbalances approximated $875 million and the company expects thatfinancing plans for 2006 will not be affected by the filing delay.

"We believe that the positive steps taken in 2005 should producerecord results in 2006 and beyond," Ustian said. "We expanded into newmarkets that take advantage of existing products and corecompetencies, while making key acquisitions that are synergistic withour core business and will help reduce our cyclicality and diversifyour customer base. We gained the scale required to further improve ourcost structure and forged strategic alliances that give us a worldwidepresence that enables us to take advantage of global sourcingopportunities."

Since the company's 2005 Form 10-K has been delayed, the companymay be delayed in announcing financial results for its first fiscalquarter ending January 31, 2006. The company also stated that it willpostpone its annual meeting of shareowners, previously scheduled forFebruary 21, 2006, to a later date to be announced.

The company believes the delay in filing the Form 10-K should notresult in any adverse action against the company by its lenders, eventhough the delay will result in the company being unable to complypromptly with requirements in various debt agreements and financialarrangements for delivery of year-end financial statements.

While the company said it will not issue specific earningsguidance for 2006 at this time, it said that based on the currentindustry outlook, it expects that earnings per share will be higherthan the current average estimate of Wall Street security analysts of$5.34 per share.

For its fiscal year ending October 31, 2006, Navistar isforecasting United States and Canadian total truck industry retailsales volume for Class 6-8 and school buses at 425,000 units, up 3percent from the 414,500 units sold by the industry in the fiscal yearended October 31, 2005. Demand for Class 8 trucks is expected toincrease 4 percent to 294,000 units from 282,800 units, while demandfor Class 6-7 medium trucks is estimated to remain unchanged at105,000 units. School bus demand is forecast at 26,000 units, downfrom 27,100 in 2005.

Robert C. Lannert, Navistar vice chairman and chief financialofficer, is working closely with Bill Caton, executive vice presidentof finance, in completing the year-end audit. As previously announced,Caton will succeed Lannert as chief financial officer upon filing ofthe company's Form 10-K. Lannert has been undergoing cancer treatmentsin recent months and is making excellent progress in his recovery.

Navistar International Corporation (NYSE:NAV) is the parentcompany of International Truck and Engine Corporation. The companyproduces International(R) brand commercial trucks, mid-range dieselengines and IC brand school buses, Workhorse brand chassis for motorhomes and step vans, and is a private label designer and manufacturerof diesel engines for the pickup truck, van and SUV markets. Thecompany is also a provider of truck and diesel engine parts andservice sold under the International(R) brand. A wholly ownedsubsidiary offers financing services. Additional information isavailable at: www.nav-international.com.

Forward Looking Statements

Information provided and statements made that are not purelyhistorical are forward -looking statements within the meaning ofSection 27A of the Securities Act, Section 21E of the Exchange Act,and the Private Securities Litigation Reform Act of 1995. Suchforward-looking statements only speak as of the date of this newsrelease and we assume no obligation to update the information includedin this news release. Such forward-looking statements includeinformation concerning our possible or assumed future results ofoperations, including descriptions of our business strategy. Thesestatements often include words such as "believe," "expect,""anticipate," "intend," "plan," "estimate" or similar expressions.These statements are not guarantees of performance or results and theyinvolve risks, uncertainties and assumptions, including the risk ofcontinued delay in the completion of our financial statements.Although we believe that these forward-looking statements are based onreasonable assumptions, there are many factors that could affect ouractual financial results or results of operations and could causeactual results to differ materially from those in the forward-lookingstatements. For a further description of these factors, see Exhibit99.1 to our Form 10-K for the fiscal year ended October 31, 2004.