CHAIRMAN'S LETTER

Navistar's Commitment to Sustainable Innovation

Daniel C. Ustian,
Chairman, President and Chief Executive Officer

Sustainability means ensuring success in the present without compromising the future. At Navistar, we partner with our customers and suppliers to pursue innovations that support sustainability in all its aspects: economic, environmental and social. Our innovations include:

• Aerodynamic products that save fuel and help truckers make a better living.
• The first no-smoke, no-smell engine technology certified by the U.S. Environmental Protection Agency as meeting 2007 standards for particulates and hydrocarbons.
• The first commercial diesel hybrid school bus.
• The first commercial diesel hybrid medium duty truck.
• Revolutionary products that protect peacekeepers around the globe.
• Emissions reductions that meet and beat regulatory requirements using sustainable advances in engine technology, not expensive add-ons.
• Ongoing reductions in our plants' energy use, waste disposal and greenhouse gas emissions.
• Remediation of brownfield sites and creation of new wildlife habitats.
• Year-over-year improvements in employee health, safety and wellness.
• Technical education that teaches new generations how to improve the world.

This sustainable approach isn't just smart, it's good business. It enables us to create great products that drive the economy while also helping our environment. It helps us reduce our own costs, making it easier for us to keep on improving. And it helps us grow profitably, which means we can provide economic livelihoods in more communities around the world.

We're proud of the innovators throughout Navistar who constantly create better products and find better ways of doing business. We hope you'll enjoy learning about their contributions and about our broad commitment to sustainable innovation.

Sincerely,

Daniel C. Ustian
Chairman, President and Chief Executive Officer