Volvo divests holding in Pharmacia & Upjohn

VOLVO DIVESTS HOLDING IN PHARMACIA & UPJOHN As a part of Volvo's strategy to divest non-automotive ownership interests, Volvo today sold half of its holding (9,879,616 shares) in Pharmacia & Upjohn to JP Morgan. The price is USD 42,86 (SEK 334) per share and the total proceeds amount to USD 423,5 M (SEK 3,303 M). JP Morgan has sold these shares to institutional investors mainly in the US and Europe. Volvo realized a capital gain of SEK 2,090 M on the disposal which will be recognized in the second quarter of 1998. Volvo intends to divest its remaining holding in Pharmacia & Upjohn during the second half of this year. To this end, Volvo has entered into a contract with JP Morgan which, during this time period, secures a minimum share price around the current share price and at the same time allows Volvo to partially benefit from a possible price increase. June 2, 1998