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Volvo 20% Sales Increase

1 September 2000

Volvo 20% Sales Increase

                         Volvo Sales Up 20% in August
                  - 19th Consecutive Month of Record Sales -

    ROCKLEIGH, N.J., Sept. 1 Strong sales for Volvo's revamped
product line continues to demonstrate public acceptance for the company's new
products.  With the successful launch of two new models this year, the V70
wagon and last month the all new Cross Country, Volvo retailers are continuing
to experience strong retail demands in these as well as the full model line.
    "Our business was very solid across all of car lines.  Compared to last
August, we are up 20% and for the year by 15%.  We are especially satisfied
with launch of our all Cross Country.  This vehicle has exceeded our
expectations in it's first month on the market, despite limited availability.
We believe this positive market reaction to the Cross Country validates this
type of premium hybrid entry in the market place." comments Mark LaNeve,
President and CEO of Volvo Cars of North America.

                          MONTH-TO-DATE            YEAR-TO-DATE

                        2000   1999     %      2000       1999      %
    UNITED STATES
    S40                2,241    162  283.3%   19,197       162     1.0%
    V40                  472     35  248.6%    4,017        35     1.0%
    S70                1,323  2,674  -50.5%   16,569    25,296   -34.5%
    V70                2,398  2,320    3.4%   19,824    21,641    -8.4%
    V70 XC *           1,011    n/a     n/a    1,116       n/a      n/a
    C70                  374    505  -25.9%    3,866     4,629   -16.5%
    S80                2,469  2,857  -13.6%   21,438    22,907    -6.4%
    S90/V90               --     --     n/a        4        23      n/a
    TOTAL             10,288  8,553   20.3%   86,031    74,693    15.2%

    CANADA
    S40                  290     --     n/a      510       n/a      n/a
    V40                   56     --     n/a       92       n/a      n/a
    S70                  200    225  -11.1%    2,093     2,727   -23.2%
    V70                   89    104  -14.4%    1,393     1,562   -10.8%
    V70 XC *              59    n/a               59       n/a
    C70                    9     35  -74.3%      172       233   -26.2%
    S80                   89    154     n/a    1,226     1,285    -4.6%
        TOTAL            792    518   52.9%    5,545     5,807    -4.5%
    NORTH AMERICA
    GRAND TOTAL       11,080  9,071   22.1%   91,576    80,500    13.8%

    * V70 XC, 2001 model year is EPA classified as a Light Duty Truck 2

      U.S. Port Inventory:   3,612      U.S Dealer Inventory:   16,094