Major order for Volvo Trucks from Iran

12/21/1999 3:03 AM EST

MAJOR ORDER FOR VOLVO TRUCKS FROM IRAN

Volvo has received an order for 1,500 F12 kits from Iran. The value of the
deal corresponds to some SEK 0.5 billion. Deliveries are expected to
becompleted during the first half of 2000.

This agreement was signed by the president of Volvo Trucks,Karl-Erling
Trogen, and the president of Saipa Diesel, Hashem Zarc. "Iran is a very
important market for Volvo Trucks and this order will help us to
consolidate our position as the market leaders in the heavy transport
sector. It is also a special order in historical terms. These will be the
last F12 trucks that are built and this order therefore represents the end
of the F12 era," Trogen said.

Volvo's operations in Iran date back over a long period and, during the
past 40 years, 40,000 heavy-duty trucks have been sold in the country.
Saipa Diesel is a state-owned company which assembles trucks at its
facilities. In addition to the material that is supplied in kits, some
local production takes place in Iran.

December 21, 1999

For more information, please contact:
Tommy Kohle, Tel: +46-31-66 65 17, mobile phone: +46-706-76 65 17
e-mail:  

Volvo is a world-leading manufacturer of trucks, buses and construction
equipment, marine and industrial engines and aerospace components. Volvo
is strongly associated with quality, safety and concern for the
environment
Volvo's head-office is in Göteborg, Sweden. Annual sales in 1998 amounted
to more than USD 14 billion, with about 52,000 employees