U.S. Army Awards Navistar Defense $1.3 Billion Truck Contract

Thousands of trucks from Navistar Defense, LLC will support rebuilding and security efforts in Afghanistan and Iraq as the U.S. Army today awarded Navistar Defense a multi-year contract valued at nearly $1.3 billion.

The U.S. Army TACOM Life Cycle Management Command awarded Navistar Defense a follow-on contract to provide Medium Tactical Vehicles and spare parts to the Afghanistan National Police, Afghan National Army and the Iraqi Ministry of Defense. Previously known as International Military and Government, LLC, Navistar Defense is an affiliate of Navistar International Corporation.

Under the multi-year contract, Navistar will supply tactical vehicles built on Navistar's severe service International 7000 Series platform. It follows a $430 million contract awarded in 2005 to Navistar by TACOM for more than 2,900 vehicles and spare parts.

"This contract award reflects Navistar's strong performance in providing quality vehicles and reliable service to the military;" said Archie Massicotte, president, Navistar Defense. "We have stepped up to the challenge to become a leader. We continue to deliver on our commitment to provide the U.S. military and allies with a comprehensive value solution that includes military vehicles, and worldwide parts and field service support."

The three-year contract is valued at $1,282,939,624 for 7,072 vehicles and parts. Approximately half of the order will be delivered during the first year of the contract with nearly 1,000 units expected to be delivered in fiscal year 2008.

Navistar will supply several vehicle variants, including General Troop Transporter, POL vehicles (petroleum, oil and lubricant), water tankers, wreckers and hazardous material trucks. In addition, Navistar will supply all required spare parts necessary to support several years of scheduled maintenance.

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