Important Milestone for Volvo Aero When New GEnx Engine Completes First Critical Test

Regulatory News:

   The GEnx-2B engine that will power the new Boeing 747-8 aircraft
has started its certification program with a successful ground testing
at General Electric's outdoor testing facility in Peebles, Ohio.
During the first ground testing the GEnx-2B demonstrated 70,950 pounds
of takeoff thrust. "The successful engine testing marks a highly
significant milestone for the project and sets a positive tone for
continued testing during 2008/2009," comments Joakim Andersson, GEnx
Project Leader at Volvo Aero (Nasdaq:VOLV) (STO:VOLVA) (STO:VOLVB).

   GEnx is the largest commercial undertaking ever for Volvo Aero.
The company will develop six different components for the engine, of
which three are being developed at Volvo Aero in Trollhattan, Sweden.

   The GEnx engine will be mounted on two different aircraft, the
Boeing 787 (The Dreamliner) and Boeing 747-8. Despite sharing the same
name, it involves two unique engine developments.

   "It involves two different engines for varying applications: 1B is
for the Boeing 787 and 2B for 747-8, but as the name reflects, we are
trying to build the engine architecture as well as the component
technology from the same base and as a result gain synergies in the
design work as well as the supply chain architecture," explains Joakim
Andersson.

   The week's successful start increases optimism for the continued
testing. The FETT (First Engine To Test) stage is concurrently the
official start of the test program in the development of the GEnx-2B,
in which five engines will be used. Testing during 2008 will include
flight tests on GE's flying test bed. The test program will be
concluded with certification of the engine for 67,000 pounds in the
first half of 2009, with entry into service in late 2009.

   Commercially, GEnx is already a major success. More than 1,100
engines have been sold to date.

   "It appears that the GEnx-2B is also receiving a highly positive
reception on the market, since Boeing is reporting higher sales
figures for its new 747-8 than it had originally expected," says
Stefan Oscarsson, Business Manager for the GE program at Volvo Aero.

   More than 400 GEnx-2B engines have been sold to Boeing's
modernized 747 model, which will be used as a freighter as well as for
intercontinental passenger service.

   Volvo Aero develops and manufactures components for aircraft and
rocket engines with a high technology content in cooperation with the
world's leading producers. Volvo Aero offers an extensive range of
services, including sales of spare parts for aircraft engines and
aircraft, sales and leasing of aircraft engines and aircraft, as well
as overhaul and repair of aircraft engines. Volvo Aero 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.

   This information was brought to you by Cision
http://newsroom.cision.com
  
    
  
  
    
      Regulatory News:
    
    
      The GEnx-2B engine that will power the new Boeing 747-8 aircraft has 
      started its certification program with a successful ground testing at 
      General Electric’s outdoor testing facility in 
      Peebles, Ohio. During the first ground testing the GEnx-2B demonstrated 
      70,950 pounds of takeoff thrust. “The 
      successful engine testing marks a highly significant milestone for the 
      project and sets a positive tone for continued testing during 2008/2009,” 
      comments Joakim Andersson, GEnx Project Leader at Volvo Aero 
      (Nasdaq:VOLV) (STO:VOLVA) (STO:VOLVB).
    
    
      GEnx is the largest commercial undertaking ever for Volvo Aero. The 
      company will develop six different components for the engine, of which 
      three are being developed at Volvo Aero in Trollhättan, 
      Sweden.
    
    
      The GEnx engine will be mounted on two different aircraft, the Boeing 
      787 (The Dreamliner) and Boeing 747-8. Despite sharing the same name, it 
      involves two unique engine developments.
    
    
      ”It involves two different engines for varying 
      applications: 1B is for the Boeing 787 and 2B for 747-8, but as the name 
      reflects, we are trying to build the engine architecture as well as the 
      component technology from the same base and as a result gain synergies 
      in the design work as well as the supply chain architecture,” 
      explains Joakim Andersson.
    
    
      The week’s successful start increases optimism 
      for the continued testing. The FETT (First Engine To Test) stage is 
      concurrently the official start of the test program in the development 
      of the GEnx-2B, in which five engines will be used. Testing during 2008 
      will include flight tests on GE’s flying test 
      bed. The test program will be concluded with certification of the engine 
      for 67,000 pounds in the first half of 2009, with entry into service in 
      late 2009.
    
    
      Commercially, GEnx is already a major success. More than 1,100 engines 
      have been sold to date.
    
    
      ”It appears that the GEnx-2B is also receiving 
      a highly positive reception on the market, since Boeing is reporting 
      higher sales figures for its new 747-8 than it had originally expected,” 
      says Stefan Oscarsson, Business Manager for the GE program at Volvo Aero.
    
    
      More than 400 GEnx-2B engines have been sold to Boeing’s 
      modernized 747 model, which will be used as a freighter as well as for 
      intercontinental passenger service.
    
    
      Volvo Aero develops and manufactures components for aircraft and rocket 
      engines with a high technology content in cooperation with the world’s 
      leading producers. Volvo Aero offers an extensive range of services, 
      including sales of spare parts for aircraft engines and aircraft, sales 
      and leasing of aircraft engines and aircraft, as well as overhaul and 
      repair of aircraft engines. Volvo Aero 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.
    
    
      This information was brought to you by Cision http://newsroom.cision.com