JCB and Volvo Construction Equipment Sign Framework Agreement on Skid Steer & Compact Tracked Loaders

STOCKHOLM--Regulatory News:

“Volvo customers will benefit from a wider range of models that maintain the high level of product safety and functionality that they expect.”

JCB and Volvo Construction Equipment (STO:VOLVA) (STO:VOLVB) have entered into a framework agreement under which they will cooperate on the engineering and manufacturing of skid steer loader and compact tracked loader products for distribution under their respective brands and through their respective global dealer networks.

It is envisaged that the first mono boom Volvo branded machines will be in production at JCB’s Savannah, Georgia facility by year end 2010. Volvo Construction Equipment will then transition skid steer loader models over time from its Pederneiras facility in Brazil.

John Patterson, Deputy Chairman of JCB, comments: “This agreement will allow us to combine forces in this key product area enabling both brands to compete more effectively.”

Olof Persson, Volvo Construction Equipment President, comments: “Volvo customers will benefit from a wider range of models that maintain the high level of product safety and functionality that they expect.”

February 1, 2010

For further information, please visit: www.volvoce.com/press:

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Volvo Construction Equipment is a major international company developing, manufacturing and marketing equipment for construction and related industries. Its products, leaders in many world markets, include a comprehensive range of wheel loaders, hydraulic excavators, articulated haulers, motor graders and compact equipment. Volvo Construction Equipment is part of the Volvo Group, 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.

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