Issue of bond loan

Volvo Treasury AB (publ) has decided to issue a SEK 600 million bond loan under its EMTN (Euro Medium Term Note) programme. The bond loan is issued on October 19th, 2007 with a maturity on April 19th, 2010 and has a floating three month interest rate.

This information and a link to full details of the issue, including the reasons of the issue, is found on Volvo's web site http://www.volvo.com/group/global/en-gb/investors/bondholder_info/

October 18, 2007

For reporters who want more information, please contact Christer Johansson, +46 31 66 13 34.

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The character of the information is such that AB Volvo (publ) may be under an obligation to disclose it in accordance with the Swedish Securities and Clearing Operations Act and/or the Swedish Financial Instruments Act. The information was disclosed to the media on October 18, 2007 at 09.15 a.m.