Volvo - Six Months Ended June 30, 2006

STOCKHOLM, Sweden--July 21, 2006--Volvo - six months ended June 30, 2006

-- Net sales increased by 7% to SEK 65,472 M (61,119) in the second quarter

-- Income for the period increased by 19% to SEK 4,680 M (3,931) the second quarter

-- Basic earnings per share rose to SEK 11.53 (9.68) during the second quarter

-- Operating income rose 22% to SEK 6,539 M (5,351) during the second quarter

-- Operating margin rose to 10.0% (8.8) the second quarter, the highest ever

-- Operating cash flow, excluding Financial Services, doubled in the second quarter and amounted to SEK 6.0 billion (3.0)

-- Renewed and widened range of distribution trucks in Europe

                                Second quarter      First six months
                                2006      2005      2006      2005

Net sales, SEK M                65,472    61,119   125,644    113,372

Operating income, SEK M          6,539     5,351    11,969      9,887

Income after financial items,
 SEK M                           6,457     5,254    11,929      9,857

Income for the period, SEK M     4,680     3,931     8,678      7,179

Basic earnings per share, SEK    11.53      9.68     21.37      17.60

Return on shareholders'
 equity during most recent 12
 months period, %                                     18.6       16.8

As of January 1, 2005 AB Volvo complies with International Financial Reporting Standards (IFRS), previously known as IAS, as adopted by the European Union. In the comments on earnings on pages 1-20 however, Volvo Financial Services is reported in accordance with the equity method. Financial information with Volvo Financial Services reported in accordance with the purchase method as it is stipulated by IFRS begins on page 21.