Volvo CE acquires dealer L.B. Smith in the United States

Volvo CE acquires dealer L.B. Smith in the United States Volvo Construction Equipment, Volvo CE, has today announced the purchase of the assets associated with the Volvo distribution business of L.B. Smith, Inc., its largest dealer in the United States and distributor for a majority of the East Coast. Volvo CE takes over the assets, primarily inventory, and certain liabilities at fair wholesale market value. No goodwill or real estate is included in the deal. Volvo CE intends to continue the operation from the existing 31 locations in Florida, Georgia, Tennessee, Alabama, North and South Carolina, New Jersey, eastern Pennsylvania and New York. The new company will be doing business as LB Smith. Volvo CE's action is taken in order to ensure that the Volvo customers in these territories continue to receive highest possible standards of product support and service. "More than 4 years of recession in the overall US market for construction equipment is impacting both manufacturers and dealers. We feel it's important to show our customers and the employees of L.B. Smith our strong commitment to the US market," says Scott Hall, Executive Vice President and responsible for Global Marketing & Sales within Volvo CE. Volvo's strategy to work mainly together with independent dealers remains and the ambition is to spin off the acquired distribution business, most likely in a number of smaller pieces compared with today. "We have already been approached by people who have a sincere interest to invest in the Volvo brand and distribution of our products," says Scott Hall. For further information, please contact: Klas Magnusson. Senior Vice President, Corporate Communications, Volvo Construction Equipment Tel: +32 2 482 5065, Mobile: +32 475 576214 Christer Johansson, Investor Relations, AB Volvo Tel: +46 31 66 13 34 May 7, 2003 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/05/07/20030507BIT01180/wkr0001.doc http://www.waymaker.net/bitonline/2003/05/07/20030507BIT01180/wkr0002.pdf