Press releases 2000

A contract for the delivery of 129 Volvo Super Olympian buses has been signed with KMB, Kowloon Motor Bus, the world's biggest double deck air-conditioned bus operator. The first 29 double deckers are now being delivered and the remaining 100 buses will be delivered throughout 2000 and 2001.

Deliveries from Volvo Trucks between January and May 2000 amounted to 32,944 trucks, distributed as follows:

Tony Helsham has been named the new President of Volvo Construction Equipment and a member of the Volvo Group Executive Committee, effective June 5.

Volvo Trucks has started assembly of heavy trucks in Bangkok, Thailand. Production this year is expected to amount to 150 Volvo FM trucks, increasing to 350 vehicles next year. The investment in the factory amounts to USD 1 million.

On Tuesday (May 23), the 1,000th combustion chamber to the Viking engine in the Ariane 4 was completed for delivery from Volvo Aero in Trollhättan.

The Board of Directors of AB Volvo has today decided to acquire a maximum of 10 percent of the total number of shares of Volvo, corresponding to a maximum of 44,152,088 shares, by offering the shareholders of Volvo to sell every tenth share to Volvo for a cash payment of SEK 264 per Series A share and SEK 271 per Series B share, corresponding to a premium of approximately 30 percent. If the repurchase offer is fully accepted, SEK 11,868 M will be transferred to the shareholders of Volvo.

Volvo Trucks' deliveries during January - April 2000 amounted a total of 26,487 units. Sales showed the following distribution:

Yesterday Volvo's new complete bus plant is inaugurated. The plant, which is situated in Wroclaw in south west Poland, will manufacture city and intercity buses with focus on sales in Central Europe.

Tryggve Sthen, currently president of Volvo Construction Equipment Corporation, has been appointed president of Volvo Truck Corporation, as of June 1 this year. He succeeds Karl-Erling Trogen, who will remain a member of Volvo's Group Executive Committee, with responsibility for synergy and integration issues and Group responsibility for certain developing markets, including India and China.

AB Volvo decided during 1998 to introduce a rolling options program under which senior executives of the Volvo Group will be allocated call options for Series B shares in AB Volvo. The first allocation of options was implemented in May 1999. Now the second allocation will be implemented.