**NAVISTAR’S      FINANCE SUBSIDIARY RECEIVES LOAN WAIVER**

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***REGULATION      G CASH RECONCILIATION***

| ($MILLIONS)                                                  | PRELIMINARYUNAUDITEDMANUNFACTURINGNON                GAAP | PRELIMINARYUNAUDITEDADJUSTMENT | PRELIMINARYUNAUDITEDCONSOLIDATEDU.S.                GAAP |
|--------------------------------------------------------------|-----------------------------------------------------------|--------------------------------|----------------------------------------------------------|
| Cash,                cash equivalents, marketable securities | $1,218                                                    | $                467           | $                1,685                                   |

***Forward      Looking Statements***

*Information      provided and statements contained in this news release that are not purely      historical are forward -looking statements within the meaning of      Section 27A of the Securities Act, Section 21E of the Exchange Act,      and the Private Securities Litigation Reform Act of 1995. Such forward-looking      statements only speak as of the date of the news release and the company assumes      no obligation to update the information included in the news release. Such      forward-looking statements include information concerning our possible or      assumed future results of operations, including descriptions of our business      strategy. These statements often include words such as “believe,” “expect,”“anticipate,” “intend,” “plan,” “estimate” or similar expressions. These      statements are not guarantees of performance or results and they involve risks,      uncertainties and assumptions , including the risk of continued delay in the      completion of our financial statements and the consequences thereof, the      availability of funds, either through cash on hand or the company’s other      liquidity sources, to repay any amounts due should any of the company’s debt      become accelerated, and decisions by suppliers and other vendors to restrict      or      eliminate customary trade and other credit terms for the company’s future orders      and other services, which would require the company to pay cash and which could      have a material adverse effect on the company’s liquidity position and financial      condition. Although we believe that these forward-looking statements are based      on reasonable assumptions, there are many factors that could affect our actual      financial results or results of operations and could cause actual results to      differ materially from those in the forward-looking statements. For a further      description of these factors, see Exhibit 99.1 to our Form 8-K filed      on April 12, 2006. In addition, the financial information presented in this      release is preliminary and unaudited and is subject to change based on the      completion of our on-going review of accounting matters, the completion of      our      fiscal year 2006 annual 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. *