Volvo Construction Equipment Announces Strategic Investment in Indian Facility for the Production of Excavators

Regulatory News:

Volvo (STO:VOLVA)(STO:VOLVB):

As part of the company’s objective of supporting customers in the growing BRIC (Brazil, Russia, India & China) markets, Volvo Construction Equipment has announced a strategic investment in its existing facility in Bangalore, India.

The investment, which totals around SEK 144 M, will allow Volvo Construction Equipment to produce medium sized excavators at the plant. These machines will primarily be models for use on the Indian market.

Eberhard Wedekind, President of Volvo Construction Equipment’s Region Asia comments: "This investment will allow Volvo Construction Equipment to fulfil the needs of customers in the large Indian market much more effectively than we could do in the past. It is a strong sign of our commitment to the growing Indian market.”

Production of the first machines is expected to start by the end of 2011.

May 11, 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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