First China built Volvo Excavator delivered to customer today

The first Volvo Excavator built in the new Volvo Construction Equipment
(Volvo CE) factory in China left the production line last week and was
today delivered to the customer, ZheJiang YuZhong Construction Group, a
supplier who is involved in the new Formula One racing track project in
Shanghai.

As more and more construction projects emerge in China, the demand for
excavators with diversified functions is growing rapidly. China has over
the last few years become one of the biggest markets for excavators,
with sales of more than 17,000 units during 2002. The forecast is that
the market will continue to grow.

To be able to meet the demand, Volvo announced last year the
establishment of wholly owned company and production facility based on
70,000 m2 of land in Shanghai's Pudong new area.

For an investment of around 15 MUSD Volvo will have a production
capacity of a couple of thousand units per year. Initial production will
focus on the recently launched 20 ton class B series crawler excavator
developed at Volvo CE's global center for excavators in Korea.

"Today's delivery from our new factory in China is a milestone in our
company history and our people have done a remarkable job to get
production up and running in less than a year," says Tony Helsham,
President and CEO of Volvo CE.

On the Sales and Marketing side, Volvo CE has 5 branches and 12 dealers
in China today. This distribution and service network will increase to 8
branches and 20 dealers to cover the whole of China during 2003.

For further information, please contact: Klas Magnusson, Corporate
Communications
Tel: +32 2 482 5065, Mobile: +32 475 576214
April 14, 2003