Organisational changes in Volvo Construction Equipment North America

Mr. Jay Roszell, currently President of Volvo Construction Equipment
(Volvo CE) North America, has decided to resign from his position to
pursue a long-term ambition of moving to the distribution side of the
business. He will assume responsibility for the Alabama, Georgia and
Tennessee branches of LB Smith.

Mr. Denny Slagle, currently President of LB Smith, will replace Mr.
Roszell. He has previously served as CFO as well as SVP Sales and
Marketing at Volvo CE North America.

Mr. Slagle will be replaced by Mr. Bill Cummins, who has spent the last
12 years as President of Mitchell Distributing Company, the Komatsu
distributor in the Carolinas.

Two additional appointments are also announced in Volvo CE North
America. Mr. Lars-Goran Andersson, currently CFO of Region International
within Volvo CE, will take up the position as CFO of Volvo CE North
America. He will replace Mr. Paul Torrington who will join LB Smith as
CFO.

Finally, Mr. Carl Lockwood, previously project leader for the backhoe
loader and currently VP of Business Development in Volvo CE Compact
Equipment, will move to Asheville and join Volvo CE North America as VP
Strategy and Business Development.

The changes are effective June 2nd.

For further information, please contact:
Klas Magnusson
Senior Vice President
Corporate Communications
Volvo Construction Equipment
Tel: +32 2 482 5065
Mobile: +32 475 576214

Date: 23 May 2003