VOLVO RENEWS PERSONNEL STOCK OPTIONS PROGRAM

The Board of AB Volvo has decided to again renew the personnel stock
options program established in 2000, and renewed in 2001 and 2002, and
through which senior executives in the Volvo Group are allotted options
on B shares in AB Volvo. Precisely as previously, the program is
earnings oriented.
The renewed program, just as last year's program, involves approximately
150 senior executives. The allotment can be a maximum of 1,135,000
options, of which the CEO and President Leif Johansson may receive a
maximum of 50,000 options. The size of the allotment is determined by
how well certain financial goals for 2003 are achieved. It is expected
that the options will be allotted in April or May 2004. The lifetime of
the options is five years and the options may be exercised during the
last two years, whereby one option carries the right to acquire one B
share in AB Volvo at an exercise price that will correspond to 100% of
the share price at the time of the allotment. For persons not domiciled
in Sweden, each option carries the right to receive a cash amount
corresponding to the difference between the actual share price at the
time of exercise and the 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. Additional
information about the program will be provided in conjunction with any
allotment of the options in April-May 2004.
May 6, 2003

For further information, contact Marten Wikforss, +46 31 661127

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 headquartered in Goteborg, Sweden. Volvo shares
are listed on the stock exchanges in Stockholm, London, Brussels and
Frankfurt and on NASDAQ in the US.