WARRENVILLE, Ill. (August 20, 2008) Due to significant marketplace and economic changes, GM and Navistar have decided not to renew the memorandum of understanding to purchase GM’s medium duty truck business, which has expired. GM will continue to run the medium duty business as it has in the past, including providing sales, service and marketing support to GM dealers for its medium duty trucks.

GM will continue to review strategic options for the business, including continued discussions with Navistar.

Navistar International Corporation (NYSE: NAV) produces International® brand commercial and military vehicles, MaxxForce™ brand diesel engines, IC brand school and commercial buses, and Workhorse® brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Navistar is also a provider of truck and diesel engine parts. Another affiliate offers financing services. Additional information is available at: www.navistar.com.

Media contacts: Roy Wiley, 630-753-2627
Investor contact: Heather Kos, 630-753-2406
Web site: www.Navistar.com/newsroom