Investor Comments on Volvo's Ownership in Scania

Investor Comments on Volvo's Ownership in Scania: Undesirable ownership by strongest competitor obstructs activities Today, Volvo explained in a press release that it does not have any intention of selling its 13-percent ownership block of shares in Scania, regardless of eventual ownership changes in Scania. Investor, which is the largest owner in Scania, with 42 percent of the votes and 26 percent of the capital, considers the resulting situation unsuitable for Scania. "Investor has had discussions with Volvo regarding Scania going back some time now. In these, we have expressed our desire that Volvo should sell its ownership in Scania," says Claes Dahlbäck, President and Chief Executive Officer of Investor. "To have the strongest competitor as one of the largest owners is, in the long run, unsuitable for Scania. It only creates negative effects for employees, for customers and for shareholders," says Dahlbäck. Background Discussions about possible ownership changes in Scania took a new turn when Volvo's management in mid-January announced that it had acquired 13 percent of the shares in Scania. At the time, Investor explained that its intention was to find the best future strategy for Scania. "This means that we, very thoroughly and carefully, must look into all conceivable future alternatives for Scania, from being a continuing independent company to various forms of collaboration or merger," Claes Dahlbäck said in a press release of January 18. At Investor's press conference held on February 11 in conjunction with the release of its 1998 earnings report, Investor's Chairman, Percy Barnevik, made this very clear: "As principal owner, we feel that Scania in 5,6,7 years from now can very well stand on its own." At the same time, he added: "But in the long run there will be change in this industry where global volume counts and where you work with platforms and components for America, Europe, Asia and Latin America. And where we feel it can be in Scania´s interest for the next generation to be in a constellation with other manufacturers. Then, we do not entirely determine ourselves when these types of discussions come up and it is a fact that changes in the industry are happening right now." INVESTOR AB For further information: Per Spångberg, Vice President Investor Relations, +46-8 614 20 31, +46-70 624 20 31 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/22/19990222BIT00550/bit0001.doc http://www.bit.se/bitonline/1999/02/22/19990222BIT00550/bit0002.pdf