Pressreleaser 2002

China is a growing market that is becoming increasingly important for the Sweden-based engine manufacturer Volvo Penta. The company is well established in China as a supplier of diesel engines, primarily for industrial applications but also for increasing numbers of applications for commercial marine traffic.

GREENSBORO, NC (December 18, 2002) It's the hit of the season. After actually driving on the open road, nine out of ten professional drivers participating in Volvo Trucks North America's Drive The Future tour preferred the new Volvo VN over their current truck.

Deliveries from Volvo's truck operations, which includes Volvo Trucks, Mack Trucks, Inc. and Renault Trucks, declined by 7% for the month of November, compared with the same month last year. On a year-to-date basis, deliveries amounted to 143,840 trucks, an increase of 1% compared with the corresponding period in the preceding year. In Europe, deliveries declined by 3% while North America posted a 10% increase compared with the first 11 months in 2001.

Volvo Aero Engine Services in Bromma, Sweden, and Corsair International, France, have signed a contract covering overhaul of engines on two of Corsair's Boeing 747 aircraft. The agreement provides Volvo Aero with revenues per engine flight hour and is valid for five years.

AB Volvo's business unit Volvo Powertrain AB is investing a total of SEK 375 M in its plants in Skövde, Sweden. The investments cover a new line for casting and modifications of the machining systems for the next-generation heavy diesel engine.

As a result of more stringent requirements placed on companies whose shares are traded in the United States, the Board of Directors of AB Volvo has decided to establish an audit committee

Volvo Construction Equipment (Volvo CE) has decided to concentrate the production of its articulated haulers into two plants instead of three and at the same time, move and integrate the Volvo Articulated Haulers' head office in Växjö to the plant in Braås, Sweden, during 2003. The changes will affect around 90 employees in Asheville, USA, and around 70 employees and another 30 consultants in Växjö/Braås.

Volvo Trucks North America, Inc. today announced Yellow Transportation, Inc., ordered 154 Volvo VNM daycab tractors, for delivery in the first quarter of 2003. Yellow will take delivery of the new Volvo trucks through its long-time dealer, Westfall Volvo and GMC Truck, Kansas City, Mo.

The IT company SchlumbergerSema will place mainframe computer operations withVolvo IT. In addition, Volvo IT is to purchase consultancy services fromSchlumbergerSema. This is a new, global partnership agreement meaning thatVolvo IT in Göteborg will become one of the biggest mainframe computeroperators in Scandinavia. It represents a total of SEK 1,000 million overfive years.

Following on from the launch of the Volvo B-series excavators at the beginning of this year, Volvo Construction Equipment can now offer their EC290B, EC360B and EC460B models with modular equipment systems. This can enable them to be changed from standard backacter duties, straight rehandling boom applications and high reach 3- piece demolition equipment configuration.