----

**Navistar            Analyst Conference Call**

----

**Safe            Harbor**
**             **
**Statement**

----

**Other            Cautionary Legends**

| • | As                      announced on April 6, 2006, the company’s previously issued                      auditedfinancial statements for periods after November 1, 2002                      should no                      longer be relied upon because of errors in such financial                      statements.   Until the company completes the review of its                      accounts and the restatement of its financial statements, no                      assurance can                      be given with respect to the financial statement adjustments                      and impacts                      resulting from such review. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                      financial data presented in this package for the 2005 fourth                      quarter and                      the 2006 first and second quarter are preliminary and unaudited                      and are                      subject to change based on the completion of our on-going review                      of                      accounting matters, the completion of the our 2005 fourth quarter                      and 2006                      first quarter and second quarter financial statements and the                      completion                      of the restatement of our financial results for the fiscal                      years 2002                      through 2004 and for the first nine months of fiscal 2005.  It is                      likely that the process of restating the prior year financial                      statements                      will require changes to the company’s financial statements for 2006 due to                      revised application of certain accounting principles and methodologies                      that individually or in the aggregate may be                      material. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Certain                      Non-GAAP measures are used throughout this presentation that                      provide                      investors with useful and relevant information about the company’s                      business.  A reconciliation to the most appropriate GAAP number is                      included in the appendix of this                      presentation. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Financial            Reporting Update**

| • | Committed                      to                      filing financials as soon as                      possible |
|---------|-------------------------------------------------------------------------------------------------------------------|

| • | Team                      in place                      led by Bill Caton |
|---------|---------------------------------------------------------------------------|

|  | • | Jim                      Blanda – interim corporate                      controller |
|--|---------|-------------------------------------------------------------------------------------------|

|  | • | Strengthened                      internal accounting                      department |
|--|---------|---------------------------------------------------------------------------------------|

|  | • | Huron                      Consulting |
|--|---------|---------------------------------------|

| • | KPMG                      accepted                      audit engagement in April |
|---------|-----------------------------------------------------------------------------------|

| • | Issues                      remain                      as outlined in our April 12th                      8-K |
|---------|----------------------------------------------------------------------------------------------------------------|

| • | Expected                      timeframe for filing/Aggressive Project                      Plan |
|---------|-------------------------------------------------------------------------------------------------|

|  | – | 2003,2004,2005                      restatements-prior to January                      2007 |
|--|---------|---------------------------------------------------------------------------------------------|

|  | – | 2006                      FYE and                      quarters-January                      2007 |
|--|---------|---------------------------------------------------------------------------------------------------|

----

**Navistar            participants on the call**

| • | Dan                      Ustian – Chairman, President, & Chief Executive                      Officer |
|---------|-----------------------------------------------------------------------------------------------------------------|

| • | Bob                      Lannert-Vice Chairman & Chief Financial                      Officer |
|---------|---------------------------------------------------------------------------------------------------|

| • | Bill                      Caton –                      Executive Vice President,                      Finance |
|---------|---------------------------------------------------------------------------------------------------------------------|

| • | Terry                      Endsley                      – Vice President &Treasurer |
|---------|-----------------------------------------------------------------------------------------------|

| • | Heather                      Kos –                      Director of Investor                      Relations |
|---------|-------------------------------------------------------------------------------------------------------------------|

----

**Great            Products**

**Competitive            Cost**

**Structure**

**Profitable            Growth**

***FY            2009 Goal***

**3            Pronged            Strategy**

**Reliable,            Resilient, Ready!**

**Our            strategy enables us to deliver our 2009 goal**

| • | $15                      Billion                      Revenue Goal |
|---------|--------------------------------------------------------------------|

| • | $1.5                      Billion Pre-Tax |
|---------|-------------------------------------------|

| • | >10%                      Segment Margins in all                      business |
|---------|-----------------------------------------------------------------------------------|

| • | Improve                      cost structure while developing synergistic niche businesses                      with richer                      margins |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Improve                      conversion rate of operating income into  net                      income |
|---------|-------------------------------------------------------------------------------------------------------------|

| • | Reduce                      cyclicality |
|---------|-----------------------------------------|

----

**Strategic            Initiatives Update-Create**

**and            Deliver**
**Great Products**

| • | Launched                      8 new                      products |
|---------|-------------------------------------------------------------------|

| • | ProStar™                      launches in 2007 |
|---------|------------------------------------------------------|

| • | Trucks                      and                      buses for the Indian market in                      2008 |
|---------|---------------------------------------------------------------------------------------------------------------|

| • | MaxxForce™11                      liter and 13 liter late 2007 |
|---------|----------------------------------------------------------------------|

| • | Focus                      on                      quality |
|---------|------------------------------------------------------------|

| • | Engine                      quality |
|---------|-------------------------------------|

| • | Truck                      quality |
|---------|------------------------------------|

----

**Severe            Service – 23.8%**

**Heavy            (LH & RH) – 17.1%**

**2005            Combined North American Market Share (CL 6-8) – 27%**

**School            Bus**

**Class            6-7**

**Combined            Class 8**

**–            18.8%**

**Class            8**

**Medium            – 39.5%**

**School            Bus Chassis – 64.5%**

**School            Buses Body – 60.7%**

**Core            Truck            Products**

**–Strong            in            everything we do –**

----

**Strategic              Initiatives Update-**

**Competitive              Cost Structure**

**$6,000            cost reduction in Truck & $600 cost reduction in Engine by            2009**

| • | Global                      sourcing (10-20% gross savings/focus on                      quality) |
|---------|---------------------------------------------------------------------------------------------------|

|  | » | Mahindra                      Joint                      Venture & South America |
|--|--------|--------------------------------------------------------------------------------------|

|  | » | Other                      Low Cost                      Country Sourcing |
|--|--------|---------------------------------------------------------------------------|

|  | » | Engineering-250                      engineers hired in India |
|--|--------|---------------------------------------------------------------|

| • | Savings                      through scale:  |
|---------|---------------------------------------------------|

|  | – | Engine                      scale                      with acquisition in South                      America |
|--|---------|---------------------------------------------------------------------------------------------------------------|

|  | – | Truck                      scale                      with Workhorse |
|--|---------|----------------------------------------------------------------------|

| • | Strategic                      Partnerships |
|---------|---------------------------------------------|

|  | » | Tires–                      Hankook |
|--|--------|-------------------------------------------|

| • | Labor                      improvements |
|---------|-----------------------------------------|

|  | » | Flexibility                      in                      the workforce |
|--|--------|------------------------------------------------------------------------|

|  | » | Favorable                      work                      rules |
|--|--------|----------------------------------------------------------------|

|  | » | Garland                      Productivity – 5% less employees while daily build up                      8% |
|--|--------|------------------------------------------------------------------------------------------------------------------|

**Continuous            improvement in below the line expenses as well**

----

***2005            Cost            of Goods***

*** Sold            Composition***

**Material**

***2002            Cost            of Goods***

*** Sold            Composition***

**Material**

***Focus            is            on supply base***

***Cost            structure is more***

***variable***

***Key            Takeaways***

**Truck            Cost            Structure Landscape  **

----

**•Strategic            Initiatives**

**•Mahindra            International**

**•South            America**

**•Other            Low            Cost Country Sourcing**

**•            Scale**

**•Strategic            Partnerships**

***FY            2009  Opportunities by category***

**Material**

**MATERIAL**

**MANUFACTURING/LABOR**

**Below            the            Line Items**

**•**
**Continuous            Improvement**

**Other**

**•**
**Pension/OPEB**

**•**
**Medical**

**•**
**Interest & Tax Expense**

***$6,000/unit***

***incrementalcostreduction            inTruck and$600/unit inEngine            by2009***

***Increased***

***Focus***

**•**
**Design**

**Executing            our Corporate Strategy**

----

**In            2006 we            intend to low cost country source**

**an            additional $200 million vs. 2005**

**Plans            to            source **

**$540            Million in 2006**

**Plans            to            exceed**

** $1.1            billion by 2009**

----

**2005            Volume            in thousands (000’s) for top 15 manufacturer’s (Classes            4-8)**

**Source:             J.D. Power – LMC; ACT Research &**

**Internal            Company Data**

**2004**

**Class            3-            5**

**Military/Export**

**India**

**Workhorse**

***-Further            Scale Opportunities-***

**Prostar**

**2003**

**World            Truck            Assembly**

**by            Manufacturer Classes 4-8**

----

**100**

**200**

**300**

**400**

**500**

**600**

**2005            Volume**

**World            Mid-range Diesel Engine Leader**

----

**Tires**

***Korea***

**Stampings**

***India***

**Castings**

***India***

**12%**

**Gross**

**23%**

**Gross**

**25%**

**Gross**

**Manufacturing            Labor Improvements**

**2004**

**2006**

**(Projected)**

**2005**

**25.6%**

**10.4%**

**20.0%**

**Below            the Line Items –**
***Increased            Focus***

**Delivering…**

**World-Class            Competitive Costs**

**Global            Sourcing**

----

**Strategic            Initiatives Update-Deliver**

**Profitable            Growth**

**Utilizing            what we have and what others have built**

| – | Improve                      existing markets via Distribution                      Channel |
|---------|---------------------------------------------------------------------------------------------|

| – | Enter                      new                      markets |
|---------|-------------------------------------------------------------|

|  | • | Military |
|--|---------|----------|

|  | • | Niche                      products-XT Family, Small Bus,                      LCF |
|--|---------|------------------------------------------------------------------------------------|

|  | • | ProStar™ |
|--|---------|----------------|

| – | Expand                      through                      strategic acquisitions and                      partnerships |
|---------|-----------------------------------------------------------------------------------------------------------------------|

|  | • | India,                      South                      America, export markets |
|--|---------|--------------------------------------------------------------------------------|

|  | • | RV                      Chassis |
|--|---------|---------------------------------|

|  | • | Hybrid,                      telematics |
|--|---------|-----------------------------------------|

----

**Operational            Update – Truck Shipments**

----

**Operational            Update-Truck Market**

**Share            and            Order Receipts**

----

**Operational            Update-Engine Shipments**

----

**DT            466E (I6)**

**~            49%            market**

**share            leader inClass 6-7 Truckand School Bus**

**70,000            units***

**6.0L            Power Stroke**

**~            50%            market**

**share            in heavyduty dieselpickup/vans**

**340,000            units***

**V6**

**For            LCF **

**Class            4-5**

**10,000            units***

**I4            /            I6**

**140,000            units***

**60%+            Mid and Full**

**size            pick-up truckdiesel enginemarket share**

** in            South America**

**Complete            line of**

** 3            - 7L products**

**MaxxForce            Big Bore**

**11            and            13 Liter**

**Big            Bore**

**Late            2007 Launch**

**Operational            Update Engine Group**

**-The            leaders            in the markets they serve-**

----

**Operational            Update-NFC**

----

**Improving            below-the-line expenses**

**Focus            on continuous            improvement             **

| • | Unfunded                      pension liability of $805 million as of October 31st,                      2004* |
|---------|----------------------------------------------------------------------------------------------------------------|

| • | Unfunded                      OPEB                      liability of approximately $1.9 Billion as of October 31st,                      2004* |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Lowered                      our                      retiree to active employee ratio to 2.9 to 1 as of April 30,                      2006 |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

| • | Active                      medical                      expenses have been flat since                      2004 |
|---------|------------------------------------------------------------------------------------------------------------------|

| • | Lowering                      the                      effective tax                      rate |
|---------|------------------------------------------------------------------------------------------------|

----

**Manufacturing            Debt**
**             **

----

**Summary–            leveraging what we have**

**and            what            others have built**

|  | • | CXT™,                      MXT™,                      RXT™, Military, MaxxForce™, Mahindra Class 6-8, CF Series,                      Bus |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | ProStar |
|--|---------|---------|

|  | • | Low                      cost country sourcing |
|--|---------|------------------------------------------------|

|  | • | Scale |
|--|---------|-------|

|  | • | Manufacturing                      productivity |
|--|---------|-------------------------------------------------|

|  | • | Controlling                      bottom-line expenses |
|--|---------|-------------------------------------------------------|

|  | • | Military,                      Export, South America acquisitions,                      RV |
|--|---------|--------------------------------------------------------------------------------------------|

----

***FY            2003****

***FY            2009 Fcst***

**RV/**

**Military**

**Manufacturing            Revenues of**

**~$7.3            Billion**

**Prior            Trough**

**Manufacturing            Revenues of**

**~$9.5            Billion**

**Cycle            Midpoint**

**Cyclical            vs Non cyclical**

**Only            20 -25%            of business in “High” cyclical area**

***FY            2004****

***FY            2007***

**Offset:**

**Parts            **
**é**
**             **

**Cost            Reductions **
**é**

**Military            **
**é**

**Workhorse            **
**é**

**Export            **
**é**

**India            **
**é**

**MWMé**

**$15            Billion            Revenue Goal**

**Next            Peak**

**Manufacturing            Revenues***
**             **

----

**Record            EPS**

**Total            NA**

**Industryé**

**2007**

**Total            NA            Industry**

**Demand**

**Offset:**

**Parts            **
**é**
**             **

**Cost            Reductions **
**é**

**Military            **
**é**

**Workhorse            **
**é**

**Export            **
**é**

**India            **
**é**

**MWMé**

**Reduced            Breakeven**

**>10            % Ave            Segment**

**Margins**

**2009            Goal**

**Consolidated            Sales and**

**Revenue            of            $15 Billion**

**Great            Products**

**Competitive            Cost**

**Structure**

**Profitable            Growth**

**3            Pronged            Strategy**

***What            it            Means for Navistar in***
***2007***

***and            beyond***

----

**Frequently            Asked Questions & **

** Supplemental            Data**

**Appendix**

----

**Frequently            Asked Questions**

| Q1: | **How                      do you plan on keeping the investment community updated on                      your                      operational                      progress?** |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A: | With                      our call on June 7th, we are resuming our quarterly conference                      calls and                      we plan to continuously increase the amount of information                      we can release                      to the public as permitted throughout the restatement                      process. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q2:** | **How                      long will it take to restate the financials? ** |
|---------|---------------------------------------------------------------------------------|

| A: | We                      have put together an aggressive project plan that projects                      we will file                      the 2006 10K in mid-January 2007**.**Shortly before this we                      intend to file the 2002 through 2004 restatements and the 2005                      10K.                       The targeted completion dates may change as the process of                      finalizing the                      financial statements                      proceeds. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q3:** | **What                      are the areas that will be restated?  Can you give us any                      examples?** |
|---------|-----------------------------------------------------------------------------------------------------------------------------|

| A: | Among                      the items                      being reviewed are accounting for capital versus operating                      leases;                      consolidations of affiliates; the adequacy of amounts recorded                      for                      asbestos liabilities; the timing of revenue recognition; the                      accounting                      for deferred income tax assets; the accounting for customer                      and vendor                      settlements; application of depreciation method; intercompany                      accounts                      reconciliations; inventory valuations; accounts payable at                      the company's                      Canadian and Mexican subsidiaries; and the company's presentation                      of                      reportable business segments. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q4:** | **What                      is the process with the NYSE when you are a late filer?** |
|---------|---------------------------------------------------------------------------------------|

| A: | Navistar                      is                      engaged in regular discussions with the NYSE staff regarding                      the status of                      the restatement and continued listing through completion of                      the                      restatement. Until Navistar is current with its SEC periodic                      reporting                      requirements, the NYSE will identify Navistar as a late filer                      on its                      website and will disseminate on the consolidated tape an indicator                      of the                      company's late-filer status. Under the listing standards of                      the NYSE, the                      NYSE may initiate a delisting proceeding when a listed company                      fails to                      file its Annual Report on Form 10-K with the SEC in a timely                      manner.                       The current standards allow for the NYSE to continue a listing                      for up to                      six months from the due date of the filing (i.e., until August                      7th, 2006                      in the case of Navistar’s 2005 Form 10-K filing), subject to ongoing                      monitoring by the NYSE.  The NYSE, at its sole discretion, may extend                      the listing for up to an additional six months, depending on                      the company’s                      circumstances.  Under the rules of the NYSE, Navistar would have the                      right to a review of any decision to delist by a committee                      of the NYSE                      Board of Directors. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q5:** | **Why                      did you change auditors to                      KPMG?** |
|---------|------------------------------------------------------------------------------------|

| A: | We                      are committed to working diligently to complete our restatements                      and the                      2006 10K by January 2007. We engaged KPMG because we believe                      they are best                      suited to help us reach that goal. We are pleased that KPMG                      accepted the                      audit engagement. They have devoted high caliber individuals,                      including 4                      partners, to this audit. Collectively, we have aggressively                      established                      dates for completing the 2006 and 2005 audits and the 2002-2004                      restatements. We are confident that their experience in project                       management will help us through this process. While we work                      through this                      process we intend to provide quality information to our                      investors. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Frequently            Asked Questions**

| **Q6:** | **What                      is your class 6-8 industry outlook for 2006?** |
|---------|----------------------------------------------------------------------------|

| A: | Our                      2006 fiscal year-end industry forecast has been revised upward                      from                      425,000 units to a range of 435,000 to 440,000 units. We believe                      Heavy                      will reach 229,000 units and Severe 75,000 units, making total                      Class 8                      trucks 304,000 units. Class 6-7 trucks should range from 106,000                      to                      108,500 units, and school bus should range from 25,000 to 27,500                      units.                      Our great products, competitive cost structure, and profitable                      growth                      strategies are enabling us to take full advantage of this                      marketplace. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q7:** | **Some                      of the smaller suppliers and at least one other Truck OEM expect                      the 2007                      class 8 market to be down 15 – 20% off from their original projection of                      25-30% due to a perceived stronger economy.  What are your thoughts                      on the 2007 industry?** |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A: | Right                      now we                      forecast Class 8 trucks being down 30% and Class 6-7 medium                      trucks being                      down 10-15%. Based on the flexibility in our operations, we                      believe we                      will be prepared.  If the industry decrease is softer then we                      projected, we will adjust our operations to meet                      demand. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q8:** | **You                      have a goal to reduce cost by $6000 per truck and $600 per                      engine by                      2009.  Can you update us on your                      progress?** |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A: | Due                      to the restatement process, we cannot give progress to the                      specific goals,                      but based on our strategic initiatives in global sourcing,                      growing scale,                      strategic partnering with others, and a continued focus on                      manufacturing                      efficiencies we believe we are on track if not ahead to meet                      these goals                      by 2009. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q9:** | **What                      is happening with your military                      business?** |
|---------|----------------------------------------------------------------------------------------------|

| A: | We                      continue to deliver re-buys on our current contracts. Additionally                      we are                      pursuing current opportunities with Tacom by actively participating                      on                      bids. Under FTTS, we are on target to deliver a demonstrator                      vehicle to                      the military in November 2006. We are also participating on                      joint light                      tech vehicle bids. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q10:** | **Have                      you seen any year over year steel price increases in                      2006?** |
|----------|---------------------------------------------------------------------------------------------------------------|

| A: | For                      the first six months, our costs reflect  $31 million of steel price                      increases. We have been able to  recover these increases in the                      marketplace. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Frequently            Asked Questions**

| **Q11:** | **Why                      did you partner with MAN for your 11 Liter and 13 Liter                      engines?** |
|----------|--------------------------------------------------------------------------------------------------------------------|

| A: | We                      examined several possibilities across the world before deciding                      to                      collaborate with MAN on big bore diesels. We chose MAN because                      they have a                      great reputation and history in building diesel engines - in                      fact Rudolf                      Diesel the inventor of diesel engines made his first engine                      at MAN. We saw                      that MAN had developed a state-of the-art big bore diesel engine                      in Europe                      from which we could derive a North American engine by leveraging                      our                      expertise in advanced emission technologies and our knowledge                      of the                      market. We also saw that both companies could achieve significant                      cost                      benefits by collaborating and gaining scale in product development                      and                      global component sourcing. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q12:** | **What                      is your existing relationship with MAN? ** |
|----------|-----------------------------------------------------------------------------|

| **A:** | We                      announced on December 6, 2004, that International and MAN had                      signed a                      collaboration pact for design, development, sourcing and manufacturing                      of                      components and systems for commercial trucks, including a range                      of diesel                      engines. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q13:** | **What                      is your interest rate now and what was it                      before?** |
|----------|------------------------------------------------------------------------------------------------------|

| **A:** | Prior                      to the                      bridge facility loan, the average debt interest rate was approximately                      7%.  Currently the bridge facility carries an interest expense of                      3                      month Libor plus a spread based on the current credit rating.                      Our current                      credit rating has a spread of 500 basis points. The 9 3/8%,                      7 ½%,                      and  6 ¼% Senior Notes and 4 ¾% Convertible Notes, for the most part,                      have been taken out with bridge loan facility. This equates                      to                      approximately $46 million additional interest expense. With                      our working                      capital generations, we intend to pay off $400 million of the                      bridge                      facility by the end of 2006. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Q14:** | **Can                      you give us any update on your statement that you will exceed                      $5.38 EPS                      now that you raised your industry guidance from 425,000 units                      to                      435,000-440,000 units?** |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **A:** | Our                      guidance remains at exceeding $5.38 EPS. We will take into                      consideration                      the increased industry volume.  Additionally, we would like to point                      out that we expect to hit this guidance despite higher interest                      and                      restatement                      expenses. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Class            8**

**Class            6-8**

**Retail            Class            6-8 Industry Landscape**

----

**Orders**

**Retail            Sales**

**Class            8            Industry Orders and Retail Sales**

----

**Source:            Wards, ACT, Polk data combined with Internal Company            reports**

**Industry**

**Total            Industry Demand**

**2006            Industry Guidance**

----

**Source:            Wards, ACT, Polk data combined with Internal Company            reports**

**Market            Share**

----

**Source:             ACT data combined with Internal Company reports **

**Order            Receipts – US & Canada**

----

**Source:            Wards, ACT, Polk data combined with Internal Company            reports**

**WW            Truck            Shipments**

----

**WW            Engine            Shipments**

----

**Debt,            Cash,            and Share Schedule**

----

**The            adjustment columns below include the activities of the company’s            financial**

**services            operations as well as other reporting adjustments, including            eliminations.**

**SEC            Regulation G**

|                                                                                                                              |   | **Manufacturing****Non-GAAP** |   | **Adjustment** |   | **Consolidated****US                      GAAP** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|----------------|--------|--------------------------------------------------|--------|
| Sales&                      Revenues                                                                                          |   |                          |   |           |   |                                             |   |
| FY03                      (as                      reported)                                                                      |   | $                             | 7,294  |           | $      | 291                                              |   | $ | 7,585 |   |
| FY04                      (as                      reported)                                                                      |   | $                             | 9,474  |           | $      | 250                                              |   | $ | 9,724 |   |
|                                                                                                                              |   |                          |   |           |   |                                             |   |   |   |   |
| Debt                                                                                                                              |   |                          |   |           |   |                                             |   |   |   |   |
| 10/31/2004                      (as                      reported)                                                                |   | $                             | 1,329  |           | $      | 1,539                                            |   | $ | 2,868 |   |
| 7/31/2005                      (as                      reported)                                                                 |   | $                             | 1,803  |           | $      | 2,087                                            |   | $ | 3,890 |   |
| 10/31/2005                      (unaudited)                                                                                       |   | $                             | 1,793  |           | $      | 1,479                                            |   | $ | 3,272 |   |
| 1/31/2006                      (unaudited)                                                                                        |   | $                             | 1,784  |           | $      | 1,758                                            |   | $ | 3,542 |   |
| 4/30/2006                      (unaudited)                                                                                        |   | $                             | 1,904  |           | $      | 1,972                                            |   | $ | 3,876 |   |
|                                                                                                                              |   |                          |   |           |   |                                             |   |   |   |   |
| Cash,                      Cash                      Equivalents,                      Marketable                      Securities |   |                          |   |           |   |                                             |   |   |   |   |
| 10/31/2004                      (as                      reported)                                                                |   | $                             | 737    |           | $      | 123                                              |   | $ | 860 |   |
| 10/31/2005                      (unaudited)                                                                                       |   | $                             | 877    |           | $      | 367                                              |   | $ | 1,244 |   |
| 1/31/2006                      (unaudited)                                                                                        |   | $                             | 503    |           | $      | 288                                              |   | $ | 791 |   |
| 4/30/2006                      (unaudited)                                                                                        |   | $                             | 758    |           | $      | 520                                              |   | $ | 1,278 |   |

----

**Definitions**

**GLOSSARY          OF TERMS**

| 1.                      Market                      Share - Information is compiled using Wards, ACT and POLK data                      combined                      with company internal reports. Market share information reflects                      retails                      sales in the United States and Canada for Classes 6-8.                              |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                         |
| 2.                      Retail                      Sales - Navistar defines a retail sale as any vehicle sold                      to the end                      customer.                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                         |
| 3.                      Shipment -                      Navistar defines a shipment as it is presented in the supplemental                      data as                      any sale to the end customer or to an International dealer.                      This term may                      also interchangeable with the the word charge-out.                          |
|                                                                                                                                                                                                                                                                                                                                                                         |
| 4.                      Weight                      Classes - refers to the maximum amount a loaded truck should                      weigh -                      vehicle weight plus payload weight. There are eight classes                      of Gross                      Vehicle Weight Ratings (GVWR).                                                             |
|                                                                                                                                                                                                                                                                                                                                                                         |
| 5.                      Order                      Receipt-An order receipt is a formal request to build a truck                      either for                      an end user ( sold order ) or for a dealer ( stock order ).Our                      order                      information comes from ACT Research and our own internal                      analysis. |
|                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                         |
| Class                      6 -                      19,501 to 26,000 lb                                                                                                                                                                                                                                                                                                      |
| Class                      7 -                      26,001 to 33,000 lb                                                                                                                                                                                                                                                                                                      |
| Class                      8 -                      33,001 lb and                      above                                                                                                                                                                                                                                                                                 |

----