OPTIONS TO SENIOR EXECUTIVES IN VOLVO

As announced previously, the Board of Directors of AB Volvo has decided
to again renew the personnel stock options program established in 2000
and through which senior executives in the Volvo Group are allotted
options on B shares in AB Volvo. Allotment has now been made with regard
to the 2002 program.
A total of about 1,125,000 options were allotted to 148 senior
executives within the Volvo Group, of which CEO and President Leif
Johansson received 50,000 options. The size of the allotment was
determined by how well certain financial goals for 2002 were achieved.
The options have an exercise price of SEK 163, corresponding to a
average price for the Volvo B shares during the period April 28-30, 2003
and a theoretical value in accordance with the Black & Scholes options
model amounting to SEK 32. The lifetime of the options is five years and
each option provides the executive the right from May 2, 2006 to May 1,
2008 to acquire a B share in Volvo for SEK 163, alternatively receive
shares at the value corresponding to the difference between the actual
market price and the established exercise price.

The senior executives do not make any payment for the options. The
options are not transferable and are invalidated if the senior executive
resigns from the company on his own accord during the lifetime of the
options. The options program involves solely existing shares and
accordingly does not result in any dilution for current shareholders.
Volvo has not hedged the commitment the company is undertaking for price
increases and social fees.

May 2, 2003

For further information, please contact Marten Wikforss, +46 31 66 11 27

The Volvo Group is one of the world's leading manufacturers of trucks,
buses and construction equipment, drive systems for marine and
industrial applications, aerospace components and services. The Group
also provides complete solutions for financing and service. The Volvo
Group, which employs about 71,000 people, has production facilities in
25 countries and sells their products in more than 185 markets. Annual
sales of the Volvo Group amount to 18 billion euro. The Volvo Group is a
publicly-held company headquarterd in Goteborg, Sweden. Volvo shares are
listed on the stock exchanges in Stockholm, London, Brussels and
Frankfurt and on NASDAQ in the US.