WARRENVILLE, Ill. (Dec. 6, 2004) — Navistar International and MAN Nutzfahrzeuge AG of Munich, Germany have announced today a joint strategic agreement to collaborate on design, development, sourcing and manufacturing of components and systems for commercial trucks, including a range of diesel engines.

Navistar’s operating company, International Truck and Engine Corp., and MAN are both leaders in the truck, bus and diesel engine business in their continents — MAN in Europe and International in North and South America. MAN Nutzfahrzeuge is the largest company in the MAN Group and one of the leading international manufacturers of commercial vehicles. In fiscal year 2003, the company sold 56,000 trucks and 6,300 buses.

Jack Allen, president of International’s Engine Group, said both companies have agreed to not comment on any specific components or applications at this time for competitive reasons. “We have a strategic collaboration agreement with MAN and we are exploring a number of opportunities to expand our International engine product line and to offer the value of integrated products for our customers,” Allen explained. “We see potential opportunities as we collaborate on design, development, sourcing and manufacturing of components and systems.”

Navistar chairman, president and CEO Daniel C. Ustian, noted that both International and MAN have extensive experience and expertise and seek to benefit from each other’s technologies and combined volumes for economies of scale. “This agreement is one of a number of opportunities we are exploring for strategic growth in order to achieve long-term success and to meet our goal of reaching $15 billion in revenues and commensurate returns by the end of the current business cycle,” he said.

MAN CEO Hakan Samuelsson said the synergies, economies of scale, and flexibility in supplying plants associated in the new alliance will assist both companies to reach world-class volumes for systems and heavy truck engines.