Volvo Aero acquires company in the U.S.

VOLVO AERO ACQUIRES COMPANY IN THE U.S. Volvo Aero is acquiring Jet Support Corporation in Seattle, Washington for SEK 60 M. The purchase is a result of the agreement between Boeing and Volvo Aero giving Volvo Aero exclusive rights to market and sell spare parts to the fleet of Boeing aircraft on the world market. Among other benefits, Jet Support Corporation will strengthen the sales organization within The AGES Group . Volvo Aero is acquiring Jet Support for about SEK 60 M (USD 7.2 M) through taking over all of the company's assets, valued at slightly more than SEK 59 M. At the same time, Volvo Aero is taking over the company's accounts payable amounting to slightly more than SEK 14 M and a long-term loan of SEK 8.3 M. Jet Support, which reported sales in 1998 of about SEK 180 M, has some 40 employees. The company has previous experience in trading in new spare parts from Boeing. Now Jet Support will strengthen the sales organization within The AGES Group and be involved in the practical aspects of inventory control. AGES will immediately begin to sell spares parts from Boeing's spare parts inventory. All of the products in inventory will be moved to a new warehouse in Kent, Washington, about 15 minutes from the international airport in Seattle. The inventory comprises 230,000 item numbers, totaling about seven million parts. Accordingly, the move will require 10-12 months. Boeing has successfully used the Internet to market and sell its spare parts for some time. In conjunction with the agreement becoming effective, AGES and Jet Support will intensify efforts to introduce direct sales of spare parts via AGES' home page on the Internet. At the same time, The AGES Group will be linked to Boeing's home page on the Internet. April 23, 1999 For further information, contact Mauritz Ljungman, +46 70 594 48 53, or +46 520 94 424. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/04/23/19990423BIT00300/bit0001.doc http://www.bit.se/bitonline/1999/04/23/19990423BIT00300/bit0002.pdf