Volvo acquires Telescopic Handler business from UpRight

12/18/2001 5:01 AM EST

volvo acquires telescopic handler business from upright

Volvo Construction Equipment (Volvo CE) has acquired the Telescopic
Handler (telehandler) business from UpRight Inc. Included are the
exclusive rights to product design and manufacturing. Facilities for
manufacturing are not a part of the agreement.

The new product range will expand Volvo's compact equipment offering to
its dealers and customers. Furthermore, telehandlers are key products in
the rental industry and the acquired range fits well into the rental
initiative recently launched by Volvo CE.

The acquired telehandler range presently consists of 6 models from 6000
lbs. to 8000 lbs. in both low and high boom versions. These products
will be further developed and launched globally under the Volvo brand
during 2003.

"We have acquired a range of products, which performed particularly well
in our head-to-head tests against leading competitors. This is a very
strong platform from which we can develop a Volvo range of
telehandlers," says Mr. Didier Teirlinck, Head of Volvo CE's Compact
Equipment business.

"This is an excellent opportunity for us to acquire a strategically
important product line, expand our dealer and customer offering and to
manufacture the machines within the framework of our present production
facilities," says Mr. Tony Helsham, President and CEO of Volvo CE.

UpRight Inc will continue to support and service the products already in
the market.

A telehandler is a versatile tool carrier used primarily in the building
and agricultural industry. The product is also known as the Rough
Terrain Lift Truck (RTLT). The total worldwide market is approximately
30,000 units per year.

For further information, please contact:

Mr. Klas Magnusson

Senior Vice President Corporate Communications

Volvo Construction Equipment

Tel: +32 2 482 5065

Mobile: +32 475 576214

December 18, 2001

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, world-leading
manufacturer of trucks, buses, construction equipment, marine and
industrial engines, and aerospace systems and components.