Options to senior executives in the Volvo group

OPTIONS TO SENIOR EXECUTIVES IN THE VOLVO GROUP As previously announced, the Board of AB Volvo has decided to introduce a personnel option program in which senior executives in the Volvo Group are allocated options relating to Volvo series B shares.The first allocation occurred in January 2000. The second allocation of personnel options has now been made. In total, approximately 163.000 options have been allocated to 72 senior executives within the Volvo Group, whereof President and CEO Leif Johansson has received 13.600 options. The number of options allocated is based on the fulfilment of certain financial goals for the year 2000. The options have an exercise price of 159 SEK, which is equal to 100% of the stock price at the time of allocation. The options run for a period of three years and give the executives the right from May 4, 2003 to May 3, 2004, to acquire one Volvo series B-share for each option at the price of 159 SEK, alternatively to receive the shares at a price which is determined by the difference between the prevailing share price and the exercise price. The executives do not make any payment for the options. The options are not transferrable and should the executive resign during the term, the options will cease to be valid. The option program will only include currently existing shares and will therefore not lead to any dilution for today's shareholders. Volvo has hedged its undertakings, including social security costs, against future share price increases. At present, no cost is estimated for hedging the undertakings in this allocation. May 4, 2001 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/04/20010504BIT00240/bit0002.doc http://www.bit.se/bitonline/2001/05/04/20010504BIT00240/bit0002.pdf