Volvo – six months ended June 30, 2006

Volvo – six months ended June 30, 2006 * Net sales increased by 7% to SEK 65,472 M (61,119) in the second quarter * Income for the period increased by 19% to SEK 4,680 M (3,931) the second quarter * Basic earnings per share rose to SEK 11.53 (9.68) during the second quarter * Operating income rose 22% to SEK 6,539 M (5,351) during the second quarter * Operating margin rose to 10.0% (8.8) the second quarter, the highest ever * Operating cash flow, excluding Financial Services, doubled in the second quarter and amounted to SEK 6.0 billion (3.0) * Renewed and widened range of distribution trucks in Europe Second quarter First six months 2006 2005 2006 2005 Net sales, SEK M 65,472 61,119 125,644 113,372 Operating income, SEK M 6,539 5,351 11,969 9,887 Income after financial items, SEK M 6,457 5,254 11,929 9,857 Income for the period, SEK M 4,680 3,931 8,678 7,179 Basic earnings per share, SEK 11.53 9.68 21.37 17.60 Return on shareholders' equity during most recent 12 months period, % 18.6 16.8 As of January 1, 2005 AB Volvo complies with International Financial Reporting Standards (IFRS), previously known as IAS, as adopted by the European Union. In the comments on earnings on pages 1-20 however, Volvo Financial Services is reported in accordance with the equity method. Financial information with Volvo Financial Services reported in accordance with the purchase method as it is stipulated by IFRS begins on page 21. Aktiebolaget Volvo (publ) 556012-5790 Investor Relations, VHQ SE-405 08 Göteborg, Sweden Tel +46 31 66 00 00 Fax +46 31 53 72 96 www.volvo.com Contacts Investor Relations: Christer Johansson +46 31 66 13 34 Joakim Wahlström +46 31 66 11 91 John Hartwell +1 212 418 7432 Noah Weiss +1 212 418 7431