Press releases 2005

Fredrik Brunell, Investor Relations Manager at Volvo, has been appointed new Chief Financial Officer of Volvo Aero. The new Investor Relations Manager will be Christer Johansson. Both will assume their new positions on December 1.

Volvo hereby invites the media to a press conference on Tuesday, October 25 in conjunction with the release of the Volvo Group's report on the third quarter 2005.

AB Volvo is selling the Group's service company Celero Support AB to Coor Service Management for SEK 680 M less the company's net debt, which currently amounts to approx SEK 130 M. The sale will result in a capital gain for Volvo of about SEK 450 M.

AB Volvo's subsidiary Renault Trucks has received an order from the World Bank for 280 Renault Kerax construction trucks. The trucks will be used in the rebuilding of the cities and villages in the heavily earthquake-damaged Bam region in Iran.

Volvo Group's recent application to establish a wholly-owned automotive finance company in China has been officially approved by the Chinese government. With the approval, Volvo Group plans to complete the preparation for business establishment within 6 months and start operations in 2006.

Volvo Aero and General Electric Company (GE) have signed an agreement whereby Volvo Aero will increase its stake in the LM2500® industrial gas turbine. The total turnover for the additional agreement is estimated to about 1 billion SEK for Volvo Aero.

AB Volvo's subsidiary Mack yesterday presented a prototype of a hybrid powertrain for heavy trucks in the US. The Mack truck is the first of a number of hybrid vehicles that Volvo Group plans to present during the coming year.

Volvo today inaugurated its first wholly-owned service facility in Russia. The investment in the new operation totals 100 million Swedish kronor. According to Staffan Jufors, President and CEO of Volvo Trucks, it will be followed by the establishment of additional facilities in the country.

AB Volvo has decided to make Volvo Trucks' plant in Tuve the world's first CO2-free automotive plant. As a result of investments in wind power and biofuel, the plant's electricity and heat will come from sources that do not emit any carbon dioxide into the atmosphere. "The Greenhouse Effect is a reality and the automotive industry has a specific responsibility for coping with emissions of carbon dioxide," says Volvo's Chief Executive Officer Leif Johansson.

The Volvo Group's truck plant in New River Valley, Virginia, in the US, has been awarded a local environmental prize for the intensive efforts made at the plant to reduce emissions. The prize - the 2005 Governor's Environmental Excellence Award - was awarded to the plant in recognition of a number of measures to improve the environment.