Annual General Meeting of AB Volvo

Annual General Meeting of AB Volvo

At the Annual General Meeting of AB Volvo held on April 4, 2007, the Board's
proposal was approved to pay an ordinary dividend to the shareholders of SEK
25.00 per share and an extraordinary dividend in the form of a 6:1 split with
automatic redemption, in which the sixth share is redeemed by AB Volvo for SEK
25.00 per share. April 11, 2007 was adopted as the record date for entitlement
to receive dividends. Payment of the dividend will be made through VPC (Swedish
Central Securities Depository and Clearing Organization) on April 16, 2006.
Record date for the share split and right to redemption shares was set at April
30, 2007. Payment of the redemption amount is expected to occur on May 28, 2007.

Peter Bijur, Per-Olof Eriksson, Tom Hedelius, Leif Johansson, Finn Johnsson,
Philippe Klein, Louis Schweitzer and Ying Yeh were reelected members of the
Board of AB Volvo and Lars Westerberg newly elected. Finn Johnsson was elected
Board Chairman. The fee to the Board of Directors was set at SEK 5,725,000, to
be distributed among the members as follows: SEK 1,500,000 to the Chairman and
SEK 500,000 to each of the other members, with the exception of the President,
who does not receive a fee; in addition, SEK 250,000 to the Chairman of the
Audit Committee and SEK 125,000 to other members of the Audit Committee and SEK
75,000 to each of the members the Remuneration Committee. 

PricewaterhouseCoopers AB was elected as auditors for an additional three-year
period.

The Board's Chairman Finn Johnsson, Carl-Olof By, representing Svenska
Handelsbanken and others, Lars Förberg, representing Violet Partners, Björn
Lindh, representing SEB funds/Trygg Försäkring and Thierry Moulonguet,
representing Renault s.a.s. were elected as members of the Election Committee.
No fees shall be paid to the Election Committee.

The decision regarding the share split and automatic redemption procedure of
shares aims at transferring surplus capital to the shareholders and to reduce
the market value per trading lot, which facilitates trading in Volvo shares for
shareholders with smaller holdings. In accordance with the procedure, each share
is split into six shares, of which one share will be automatically redeemed for
SEK 25.00. The decision also includes a bonus issue without issuance of new
shares through the transfer of SEK 425,684,044 from unrestricted shareholders'
equity to share capital. 

The Meeting resolved to establish a new share-based incentive program during the
second quarter of 2007 for senior executives in the Volvo Group. The program
mainly involves that a maximum of 518,000 Series B shares in the Company could
be allotted to a maximum of 240 senior executives, including members of Group
Management, during the first six months of 2008. The allotment shall depend on
the degree of fulfillment of certain financial goals for the 2007 fiscal year
and which are set by the Board. If these goals are fulfilled in their entirely
and if the price of the Volvo B share at the time of allotment is SEK 567, the
costs for the program will amount to about SEK 317 M. 
So that Volvo shall be able to meet its commitment in accordance with the
program, with limited cash flow effect, the Meeting further resolved that Volvo
may transfer own shares (treasury stock) to the participants in the program.

April 4, 2007

For further information, please contact Mårten Wikforss, +46 31 66 11 27 or +46
705 59 11 49


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 83,000 people,
has production facilities in 18 countries and sells their products in more than
180 markets. Annual sales of the Volvo Group amount to about 27 billion euro.
The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden.
Volvo shares are listed on the Stockholm stock exchange and on NASDAQ in the US.