Exhibit 99.1

         Investor Contact: Carmen Corbett, 312/ 836-2406
         Media Contact:    Roy Wiley, 312/ 836-2627




             NAVISTAR RAISES FORECAST FOR 1999 INDUSTRY TRUCK VOLUME


       Considers adjustment to its valuation allowance that would further
                 boost net income; adopts shareowner rights plan

         CHICAGO - April 20, 1999 - Navistar  International  Corporation  (NYSE:
NAV)  announced  today that,  based upon  continued  strong demand in the United
States and Canada,  it has raised its forecast for industry demand for heavy and
medium  trucks and school  buses to a combined  total of 415,000  units from the
380,000 it forecast last December.

         The new  Navistar  forecast  for total  industry  volume in the  United
States and Canada breaks out as follows:  heavy trucks,  250,000 units,  up from
224,700; medium trucks, 133,000 units, up from 124,000; and school buses, 32,000
units up from the previous forecast of 31,300 units.

         John  R.  Horne,  Navistar  chairman,  president  and  chief  executive
officer,  said the  company is now  projecting  a  significantly  stronger  1999
performance.  Accordingly,  the company has begun to evaluate the impact of this
change on its  deferred  tax asset  valuation  allowance,  which may result in a
significant  reduction to the  allowance.  The company  expects to complete this
evaluation in the third quarter.

         The  deferred  tax  asset   valuation   allowance  is  related  to  the
realization of Navistar's net operating loss carryforwards.  Any adjustment will
be recorded as a reduction  in income tax expense,  which will lower  Navistar's
effective tax rate and increase net income and earnings per share.

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Page Two/Forecast

         Additionally,  the company's board of directors has adopted a preferred
share purchase rights plan designed to protect  shareowners  against unsolicited
abusive  takeover  tactics.  The  company  is not aware of any such  attempt  at
present.

         Horne  said the newly  adopted  rights  plan is  designed  to  maximize
shareowner  value by encouraging  any potential  acquirors to negotiate with the
board of directors rather than launch an unsolicited hostile takeover attempt.

         "The  Navistar  board of  directors  believes the rights plan is in the
best long term interests of shareowners because it maintains the board's ability
to  effectively  represent the interests of the company and  shareowners  in the
event of an  unforeseen  unsolicited  takeover  attempt,"  Horne said.  "Abusive
takeover  tactics can deprive  shareowners of the full value of their shares and
squeeze them out of their investment without giving them any real choice."

         Horne said the new rights will only become  exercisable if and when the
situation  arises for which the rights were created -- namely the acquisition or
tender  offer  for more  than 15  percent  of the  company's  common  stock in a
transaction that has not been approved by the Navistar board of directors. Under
the plan, if either event occurs, Navistar shareowners would then have the right
to acquire additional Navistar common stock at a 50 percent discount.

         The new rights  have been  declared  as a dividend  to  shareowners  of
record as of the close of business on May 3, 1999. The rights will automatically
accompany  and trade with the shares of  Navistar  common  stock on the New York
Stock  Exchange.  The rights  dividend  is not taxable and will expire on May 3,
2009 unless redeemed, exercised or exchanged.

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Page Three/Forecast

         Navistar International Corporation, with world headquarters in Chicago,
and 1998 sales of $7.9 billion,  is a leading North  American  producer of heavy
and medium  trucks and school buses.  The company is also a worldwide  leader in
the manufacture of mid-range  diesel  engines,  which are produced in a range of
160 to 300  horsepower  for the  International(R)  brand,  and a  private  label
designer and  manufacturer of diesel engines for the full-size  pickup truck and
van markets and selected industrial and off-highway markets.

         Net income for the first fiscal quarter ended January 31, 1999, totaled
$61 million, or $0.91 per diluted common share,  compared with net income of $38
million,  or $0.42  per  diluted  common  share in the same  period  last  year.
Consolidated  sales and revenues from the company's  manufacturing and financial
services operations for the first quarter totaled $1.9 billion, compared to $1.7
billion in the first quarter of 1998. Manufacturing gross margin for the quarter
increased  3.1  percentage  points to 16.5 percent  from the 1998 first  quarter
gross margin of 13.4 percent.  Improved  productivity,  improved material costs,
better truck pricing, and added engine volume strengthened quarterly results.


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