GOTEBORG, Sweden, May 2, 2003 (PRIMEZONE) -- As announced previously, the Board of Directors of AB Volvo (Nasdaq:VOLVY) (Other OTC:VOLVF) (Other OTC:VOLAFK) has decided to again renew the personnel stock options program established in 2000 and through which senior executives in the Volvo Group are allotted options on B shares in AB Volvo. Allotment has now been made with regard to the 2002 program.
A total of about 1,125,000 options were allotted to 148 senior executives within the Volvo Group, of which CEO and President Leif Johansson received 50,000 options. The size of the allotment was determined by how well certain financial goals for 2002 were achieved. The options have an exercise price of SEK 163, corresponding to a average price for the Volvo B shares during the period April 28-30, 2003 and a theoretical value in accordance with the Black & Scholes options model amounting to SEK 32. The lifetime of the options is five years and each option provides the executive the right from May 2, 2006 to May 1, 2008 to acquire a B share in Volvo for SEK 163, alternatively receive shares at the value corresponding to the difference between the actual market price and the established exercise price.
The senior executives do not make any payment for the options. The options are not transferable and are invalidated if the senior executive resigns from the company on his own accord during the lifetime of the options. The options program involves solely existing shares and accordingly does not result in any dilution for current shareholders. Volvo has not hedged the commitment the company is undertaking for price increases and social fees.
May 2, 2003
For further information, please contact Marten Wikforss, +46 31 66 11 27
The Volvo Group is 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. The Volvo Group, which employs about 71,000 people, has production facilities in 25 countries and sells their products in more than 185 markets. Annual sales of the Volvo Group amount to 18 billion euro. The Volvo Group is a publicly-held company headquarterd in Goteborg, Sweden. Volvo shares are listed on the stock exchanges in Stockholm, London, Brussels and Frankfurt and on NASDAQ in the US.
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