Volvo - Six Months Ended June 30, 2003

GOTEBORG, Sweden, July 23, 2003 (PRIMEZONE) -- Volvo) Volvo - Six Months Ended June 30, 2003 Second quarter First six months 2003 2002 2003 2002 Net sales, SEK M 44 593 49 294 85 524 89 679 Operating income, SEK M 2 242 1 559 3 151 1 197 Income after financial items, SEK M 2 043 1 310 2 800 692 Net income, SEK M 1 722 1 080 2 228 334 Sales growth, % (9.5) 4.7 (4.6) (1.3) Income per share, SEK 4.10 2.60 5.30 0.80 Return on shareholders' equity 4.2 (2.0) during most recent 12 months period, %

 -- During the second quarter the new Volvo FH16 was introduced,
    equipped with an all-new 16-liter engine of up to 610 horsepower.

 -- Net sales for the second quarter 2003 amounted to SEK 44,593 M (49,294).

 -- Strong improvement in truck earnings, a favorable earnings trend in
    North America and improved results within Renault Trucks in Europe.

 -- Net income increased to SEK 1,722 M (1,080).

 -- Income per share for the second quarter amounted to SEK 4.10 (2.60).

 -- Cash flow after net investments excluding Financial Services
    amounted to SEK 2.7 billion in the second quarter (3.2).