Pressreleaser 2002

Volvo Construction Equipment will establish a chain of construction equipment rental outlets, throughout North America and parts of Europe over the next couple of years

The negative economic trends were reflected in the Group's operating results, which were unsatisfactory throughout the entire year. The fourth quarter results continued the trend from previous quarters, however the integration of the truck companies had a positive effect on earnings. The continued focus on cash flow was successful, and we were able to deliver positive cash flow for the full year, particulary during the last quarter. Despite the difficult economic conditions, the year was characterized by extensive product renewal. The simultaneous launch during the fourth quarter of Volvo Truck's new FH and FM series, was the largest-ever product introduction, says Leif Johansson, CEO.

Total deliveries for Volvo Global Truck for the January-December period amounted to 155,311 - a decrease of 17% compared to full year 2000. In Europe, total deliveries amounted to 98,041, a decrease of 9%, whereof Western Europe declined with 10% to 90,460 units. Deliveries to Eastern Europe increased, however, by 8% to 7,581 units.

As announced in December 2001, Volvo Construction Equipment will showcase its newly developed Backhoe Loader at the ConExpo tradeshow in Las Vegas, USA, on March 19-23, 2002.

The new Volvo Trucks product range is being unveiled to the truck world at the RAI European Road Transport Show 2002 in Amsterdam.

The new Volvo E-series of wheel loaders combine high productivity, low fuel consumption and low environmental impact, making them the ideal machines for rock, rehandling and log handling applications.

Volvo Construction Equipment has launched its B-series of excavators, a brand new generation of machines designed to provide more power, more productivity and improved operator comfort.

AB Volvo hereby invites the mass media to a press conference on February 8 in conjunction with the release of the Volvo Group's report on operations, 2001.

Volvo Construction Equipment will occupy nearly 3 250 m2 (35,000 square feet) of exhibit space at North America's largest construction equipment trade show, CONEXPO-CON/AGG 2002, to be held from 19 to 23 March 2002, at the Las Vegas Convention Center in Las Vegas, Nevada. New products and equipment models will be introduced to an expected 135 000 visitors from the worldwide construction equipment market.

Volvo Bus South Africa Pty has begun the delivery of 200 city buses to Metrobus in Johannesburg, South Africa. The delivery comprises 150 B 7 TL double-decker buses and 50 standard B 7 R buses. Bodybuilding on these vehicles has been done by Marcopolo S.A. in Brazil and South Africa. The delivery marks an important modernisation of the city's fleet of buses and also represents a new element on the urban scene prior to the year's major U.N. summit meeting, where world leaders will discuss environmental and economic development. The meeting is a continuation of previous meetings held in Rio de Janeiro and Kyoto.