Press releases 1998

Volvo Aero has been awarded a five-year engine maintenance contract by Continental Airlines, the major US-based airline. The total value of the contract, which commences on January 1, 1999, is USD 250 million.

Volvo is now concluding the disposal of its remaining holding, of 9,879,616 shares, in Pharmacia&Upjohn. As a result of the disposal Volvo will report revenues amounting to approximately SEK 3.4 billion and a book gain of slightly more than SEK 2.3 billion in the fourth quarter of 1998.

Volvo Trucks in Lindesberg has issued redundancy notices to 50 of its staff. The notices affect 15 white-collar staff and 35 blue-collar.

Volvo Environment Prize to water researchers

Hungary's largest transport company, Hungarocamion, has signed an agreement for supply of 500 Volvo FH12 trucks. This purchase marks a major breakthrough for Volvo's truck sales on the Hungarian market.

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Volvo Aero has reached an agreement in principle to acquire 67 percent of the Norwegian aircraft engine component manufacturer Norsk Jetmotor, based in Kongsberg. The sellers are the Norwegian state and Kongsberg Group.

The US carrier Challenge Air Cargo Inc., today announced the signature of an agreement with the Swedish aircraft engine overhaul and service company, Volvo Aero Engine Services (VAES). The total value of the order is 200 Million USD during a period of 10 years.

Volvo and Deutz have signed an enlarged cooperation agreement which is based on their intentions that were announced earlier this year. The agreement represents an investment for Volvo amounting to a total of SEK 1 billion, including the acquisition of a minority shareholding of 10 % in Deutz AG.