Volvo AB

Volvo China Investment and Bank of China enter ...

Volvo China Investment and Bank of China enter into Master Co-operation

AB Volvo's subsidiary Volvo China Investment Co., Ltd. have signed a Master
Co-operation Agreement with Bank of China in Beijing. The agreement was
coordinated on Volvo's behalf by Volvo Financial Services.

According to the agreement, Bank of China will provide Volvo China and its
branch and subsidiary companies with credit support including services such as
short and long-term loans, guarantees, letters of credit, and other credit
services. In addition, Bank of China will offer comprehensive financial services
including cash management, settlement of foreign currencies, accounts receivable
and other financial services.

The second part of the agreement concerns the creation of effective and
competitive financing solutions for AB Volvo's dealers and customers. For
example, customers may finance their purchase of products sold by the Volvo
Group, namely Volvo Construction Equipment, Volvo Buses, and trucks branded with
the Volvo, Renault and Mack trademarks.

 March 19, 2004

For further information, please contact, David Freilich,
Volvo Financial Services, +1 201 8027706

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 76,000 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 Göteborg, Sweden. Volvo
shares are listed on the stock exchanges in Stockholm, London and Frankfurt and
on NASDAQ in the US.