Renault Trucks to sell Volvo buses in France

An agreement has been reached between Volvo Bus Corporation and Renault
Trucks covering the sale of Volvo buses by Renault Trucks in France.

The French bus market is the second largest in Europe with more than
4,000 registrations each year. Volvo has been present in the market for
more than thirty years selling primarily tourist coaches as well as
inter-city and city buses. During the past ten years, more than 1,200
Volvo buses and coaches have been delivered to French customers.

Concurrent with the new marketing agreement, Volvo Buses will gradually
present new models to meet market needs in France. Volvo recently
delivered low-floor, CNG-powered (compressed natural gas) buses to the
cities of Nantes and Montbeliard and a new version of Volvo's low-floor
bus, the Volvo 7700, is being presented at the Bus World fair in
Kortrijk, The Netherlands. In addition, new tourist coach and inter-city
bus models will gradually be introduced.

The cooperation with Renault Trucks will provide Volvo Buses access to a
large dealer network for repair, service and spare parts.
"This will be an excellent opportunity to increase our business", says
Patrick Mosca, Senior Vice President, Renault Trucks French Sales
Operations.
Combined with the existing Volvo Trucks dealer network, Volvo Buses will
ensure virtually nationwide coverage in France. According to Volvo Bus
Corporation President Hakan Karlsson, who is highly satisfied with the
agreement, the ambition is to attain a substantially higher market share
in France.

"With this new set-up, France has the potential of becoming one of Volvo
Buses large markets in just a few years time", says Hakan Karlsson.

October 16, 2003

For further information, please contact
Lars Johansson, +46 70 9792717 Director, Global Commercial Development,
Volvo Buses,

Patrick Mosca, +33 4 72 96 61 47, Senior Vice President, Renault Trucks
French Sales Operations