Volvo's board of directors approves new issue of shares

VOLVO'S BOARD OF DIRECTORS APPROVES NEW ISSUE OF SHARES In connection with Volvo's public offer to Scania's shareholders, Volvo's Board of Directors, subject to approval of an extraordinary shareholders' meeting, has approved a new issue of shares whereby the company's share capital is to be increased by a maximum of SEK 578,689,464. The proposed increase in share capital is conditional on Volvo obtaining any required approval of regulatory authorities for the acquisition of the shares in Scania pursuant to conditions acceptable to Volvo. However, the Board shall have the right to waive, in whole or in part, this condition. New shares may be subscribed for by Scania's shareholders during the period from October 4 through November 4, 1999. However, the Board of Directors shall be entitled to extend the subscription period. A prospectus for Scania's shareholders describing Volvo's public offer to acquire Scania is intended to be released on September 28. Volvo's public offer to Scania's shareholders is not being made, directly or indirectly, in or into, and will not be permitted to be accepted in or from the United States. An extraordinary shareholders' meeting of AB Volvo will be held Wednesday, September 29, 1999. On or about September 15, 1999, shareholders of Volvo who are directly registered with VPC will be sent an information brochure regarding the acquisition of Scania. Volvo's nominating committee has decided to propose to the extraordinary shareholders' meeting that Marcus Wallenberg be elected a new member of Volvo's Board of Directors. The resolution regarding the election of Marcus Wallenberg as a member of the Board of Directors will be effective when the transaction between Investor and Volvo has been accomplished. September 2, 1999 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/09/02/19990902BIT00310/bit0001.doc http://www.bit.se/bitonline/1999/09/02/19990902BIT00310/bit0002.pdf

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The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The headquarter is located in Gothenburg, Sweden.

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