Volvo Penta and Wartsila plan cooperation

Volvo and Wartsila are planning future cooperation regarding service and
delivery of marine diesel engines for commercial shipping. The
cooperation will be initiated in a number of selected markets, with
global coverage planned thereafter.

Through a broadening of its product program, Volvo Penta has increased
its total product offering for commercial shipping. With engines up to
2,000 hp, Volvo Penta's engines - both main and auxiliary -
are installed in increasing larger vessels within this business segment.

Wartsila's marine engines are considerably larger than these, the
largest having outputs of more than 100,000 horsepower (80,000 MW).
Wartsila is the world's leading supplier of ship power and propulsion
systems. The respective product ranges of the two companies complement
each other very well.

The planned cooperation between the companies means that Wartsila will
sell and provide service for Volvo Penta's auxiliary engines and marine
gensets. The combination of Wartsila's propulsion engines
and Volvo Penta's marine gensets will create a broad customer offering
within commercial shipping.

"The cooperation strengthens Volvo Penta's position as an engine
supplier within commercial shipping," says Goran Gummeson, responsible
for Volvo Penta's marine engines. "Wartsila has a worldwide reputation
in the industry, in terms of products as well as service, and we believe
that through this cooperation we can strengthen both companies' total
customer offering."

"Including the largest Volvo Penta marine engines in our product and
service offering marks a significant step for Wartsila," commented Tage
Blomberg, Group Vice President, Service Division
at Wartsila.

Volvo Penta's engine deliveries to Wartsila will comprise mainly the
engines in the power range of 300
to 2,000 hp. The cooperation solely involves Volvo Penta's marine
commercial activities.

August 18, 2003

For further information please contact Mats Edenborg, AB Volvo Penta,
Corporate Communication,
phone +46 31 66 83 11 or Tage Blomberg, Wartsila, phone: +358 10 709
2424.