Proven Technologies and Advanced Engineering Key to Volvo Trucks North America's 2007 Engines

TAMPA, Fla., Feb. 13, 2006 -- Three new engines from Volvo Trucks North America will use proven emissions reduction technologies to meet the stringent new environmental standards for 2007. The 2007 Volvo D11, D13 and D16 engines all use high-efficiency cooled exhaust gas recirculation (EGR) in combination with a diesel particulate filter (DPF) to reduce emissions of oxides of nitrogen (NOx) by 50%, and particulates (soot) by 90% from current levels.

Volvo has extensive experience with these technologies in North America and other markets around the world. Volvo Trucks North America has produced approximately 42,000 trucks equipped with Volvo EGR engines since late 2002, while more than 1,600 DPF-equipped Volvo trucks and buses operate in Europe with millions of miles of positive experience.

NOx Control: High-Efficiency Exhaust Gas Recirculation

Volvo's EGR system uses three state-of-the-art components to provide exactly the right amount of EGR to reduce NOx emissions:

   * Sliding nozzle variable geometry turbocharger (VGT) with electronic
     actuation - first used by Volvo on the D16 in 2005 - provides the
     required EGR pressure with great precision.
   * Hydraulically-controlled EGR valve controls and regulates the EGR flow
     - the amount of exhaust gas required.
   * Delta-pressure EGR flow sensor measures changes in EGR flow and
     communicates to the VGT actuator and EGR valve through a closed-loop
     electronic system, using Volvo's VECTRO(R) engine management system.

These three system components, first used together in 2005 with the Volvo D16, combine to provide exceptional fuel economy and improved engine response.

Particulate Control: Diesel Particulate Filter

Microscopic soot particles are trapped and consumed by Volvo's diesel particulate filter. Volvo's DPF system contains a catalyst and particulate trap. Soot from the engine exhaust is trapped within a catalyzed ceramic monolith with a Volvo-specific metal coating. The DPF system also acts as a muffler.

Volvo offers two choices for DPF installation. The primary choice is Volvo's "Compact DPF," which mounts to the frame under the cab on the right side of the truck. This configuration allows a simple vertical straight pipe behind the cab, which in some instances may allow the trailer to be moved closer for better aerodynamics and fuel economy. A DPF is also available for back of cab mounting, for short wheelbase vehicles where space is at a premium.

Volvo's DPF system has been designed to operate with a primarily passive regeneration cycle, depending on duty cycle, in order to optimize fuel economy. In passive regeneration, the soot is stripped out of the monolith by an ongoing catalytic reaction process that uses no additional fuel. The process leaves a fine ash that remains trapped in the DPF. According to regulation, the filter must be able to operate for more than 100,000 miles before it needs to be cleaned of ash for the first time; after that, cleanings will occur at intervals of 150,000 miles or more, during routine maintenance service. DPF cleaning is estimated to cost $150 per service and Volvo dealers will be trained to perform the necessary service.

For duty cycles that do not generate a sufficiently high temperature, such as "stop-and-go" or local delivery applications, the DPF may occasionally need to undergo active regeneration. In this process, a small amount of diesel fuel is introduced into the exhaust stream at the turbocharger outlet. For Volvo trucks, the fuel travels in a mist to wet the DPF's pre-catalyst. This causes a chemical reaction which raises DPF temperatures to the level required to oxidize and burn off the soot. Active regeneration takes approximately 15 minutes and the operation is not apparent to the driver, except for an indicator lamp in the instrument cluster. Active regeneration consumes approximately half a gallon of fuel. The driver will have the ability to postpone regeneration if it is not desired at that time for operational reasons.

Ultra-Low Sulfur Diesel (ULSD)

In addition to the EGR and DPF systems, Volvo's engines are designed to operate with the new ultra-low sulfur fuel scheduled to be introduced in October 2006. The U.S. Environmental Protection Agency mandated that the sulfur level in on-highway diesel fuel be reduced from 500 parts per million (ppm) to 15 ppm. Volvo diesel engines have run on 10 ppm diesel in Scandinavia since 1990, so the new fuel requirement does not present a challenge for Volvo.

Volvo Trucks North America assembles its Volvo VT, VN and VHD trucks in the United States, at the ISO14001 and ISO9001 certified New River Valley Plant in Dublin, Virginia. Volvo engines for North America are assembled in Hagerstown, Maryland. Volvo sponsors the America's Road Team national highway safety outreach program.

Volvo Trucks North America is part of the Volvo Group of companies, a publicly held company headquartered in Gothenburg, Sweden. With 2005 sales of approximately $31 billion, Volvo's business areas include heavy trucks, buses, construction equipment, marine and industrial drive systems, aerospace, and financial services. In the United States, Volvo shares are listed on NASDAQ and are traded as ADRs .