Volvo Reduces Its Ownership In Euclid Hitachi

VOLVO REDUCES ITS OWNERSHIP IN EUCLID HITACHI Volvo Construction Equipment has entered into an agreement with Hitachi Construction Machinery Co. Ltd to reduce its ownership in its joint venture company, Euclid Hitachi Heavy Equipment Inc., from the present 60 percent to 20 percent of issued stock. This brings Hitachi's share in the company to 80 percent. In addition, Hitachi will purchase the remaining 20 percent stake in EHHE on October 1, 2001, making the company a wholly-owned Hitachi subsidiary. EHHE, based in Cleveland, Ohio, USA, produces and distributes rigid haulers in the size of 36 ton to 260 ton, used in construction and mining applications. During 1997, EHHE produced about 300 rigid haulers and had a turnover of approximately 160 MUSD. In addition, Volvo Construction Equipment has agreed to sell its rigid hauler business in Australia to Marubeni Construction & Mining Equipment Pty. Ltd., Australia. October 2, 1998