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Navistar Defense awarded $827 million contract for MAXXPRO Dash MRAP vehicles

WARRENVILLE, Ill., (February 16, 2010) Navistar Defense, LLC today was awarded a contract for $827 million to provide 1,050 enhanced International® MaxxPro® Dash Mine Resistant Ambush Protected (MRAP) vehicles. Vehicles under the award from the U.S. Marine Corps Systems Command will include the DXM™ independent suspension solution.

“The threats that our warfighters face continue to change every day and we understand the urgency needed to rapidly engineer and deliver new Dash vehicles to defeat emerging threats,” said Archie Massicotte, president, Navistar Defense. “As the military moves toward a more mixed vehicle fleet to help our military forces safely complete missions of all types, we will continue to support all our MaxxPro units and anticipate needed vehicle enhancements.”

Under the new contract, MaxxPro Dash vehicles will incorporate the DXM™ independent suspension solution provided by Hendrickson Truck Suspension Systems and AxleTech International. This vehicle upgrade further improves the vehicle’s off-road capabilities, which is vital given Afghanistan’s lack of road infrastructure.

“After conducting an extensive trade study, we selected a no-compromises suspension system for our MaxxPro,” said Massicotte. “The design also minimizes the effort needed to integrate the system onto existing vehicles, which will accelerate the delivery of this important modification should the Army be interested in retrofitting our MaxxPro fleet.”

Navistar will conduct work at its Garland, Texas, and West Point, Miss., assembly plants. Deliveries will begin in April and will be completed by the summer of 2010. Parts are not included the contract.

Since May 2007, Navistar has received orders for a total of 7,494 MaxxPro MRAP vehicles to help combat improvised explosive devices (IEDs) and other threats. In late 2008, the company modified its design for added mobility and produced the MaxxPro Dash MRAP variant specifically for use in Afghanistan. The addition of an independent suspension solution further improves mobility and is one of several capability insertions that will be incorporated into the next 1,050 MaxxPro Dash units.

Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse® brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.