Volvo Aero signs agreement with Skyways Express worth at least SEK 100 M

Volvo Aero and Skyways Express have signed an agreement whereby Volvo
Aero will become Skyways' exclusive supplier of engine overhaul and
equipment maintenance services for the PW125 engines. The agreement is
estimated to be worth at least SEK 100 M to Volvo Aero.

The agreement is based on a price per hour of flying time and gives
Volvo Aero total responsibility for the customer's fleet of aircraft
powered by PW125 engines. Volvo Aero will be working on both engines and
equipment. The agreement is valid until 2005 after which it will be
extended automatically for one year at a time.

Within the framework of the agreement, Volvo Aero will also provide
technical support functions to relieve the load on Skyways, as well as
assisting with Skyways' maintenance planning. Under the terms of the
agreement, Volvo Aero Services will also supply reserve engines if
necessary.

"We are very pleased to have secured this agreement in tough competition
with a number of maintenance facilities in both Europe and the US,"
comments Goran Norden, marketing and sales manager in Volvo Aero's
Engine Services business area.

Engine Services in Trollhattan will perform maintenance of the PW125
engines. Since the agreement falls within the framework of Volvo Aero's
planned annual volume, it will not result in recruitment of any new
personnel.

October 8, 2003

For further information, please contact Olof Pettersson, Business Unit
Manager PW100, telephone +46 705-105 550 or Par Carlsson, Vice
President, Technical, at Skyways, +46 733-85 86 00.

A photo showing the Fokker 50 is available on the Internet:
http://www.skyways.se/organisation/hires/fokker.jpg