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Volvo Trucks North America Unveils New Lineup of Advanced Engines for 2007

TAMPA, Fla., Feb. 13, 2006 -- Volvo Trucks North America today unveiled its comprehensive new family of heavy-duty diesel engines for 2007. The new Volvo engines - the 11-liter D11, 13-liter D13 and 16-liter D16 -- are designed to deliver excellent fuel economy, reliability, durability and driving performance. At the same time, each of the new engines meets the very strict U.S. emissions standards that take effect in 2007.

"The new Volvo engine family will make our air cleaner and help our customers be more productive and efficient," said Peter Karlsten, president and CEO of Volvo Trucks North America. "Volvo is the largest heavy-duty diesel manufacturer in the world and its heritage of innovation and leading technology is put to the full use of our customers for 2007. These engines were developed and optimized for Volvo's North American customers.

"Volvo customers now have the ability to choose the precise engine for their business in terms of displacement and power ratings, without any compromise in technology, features or benefits," said Karlsten. "These engines will deliver fuel economy equivalent to our current engines, which will please owners and fleet managers. Drivers will enjoy outstanding driveability from the engines' power, torque and response. And everyone benefits from lower emissions made possible by Volvo's advanced diesel technology."

As previously announced, Volvo Trucks North America will use high- performance cooled exhaust gas recirculation (EGR) and diesel particulate filters (DPF) to achieve the new emissions standards. This builds seamlessly on Volvo's experience with EGR in North America since 2002, as well as years of Volvo experience with DPF in other markets. The third component of the emissions reduction formula is the ultra-low sulfur diesel which will be introduced in North America in the fourth quarter of 2006.

The Right Choice for Each Application

The new engine family gives Volvo customers a complete range of options for their operations in North America. The engine builds upon the legacy of the Volvo D12, the highest-selling heavy-duty engine model in the world in 2005.

The Volvo D11 will be available in the Volvo VNM (medium hood length) and Volvo VNL (long hood) models. The engine will be available with 325 hp to 405 hp, with torque from 1250 to 1450 lb-ft. Primary applications will be pickup and delivery, less-than-truckload and regional distribution. The D11's low weight of 2175 pounds also suits it for weight-sensitive applications such as bulk tanker and petroleum transport.

The Volvo D13 will be available in the Volvo VNM and Volvo VNL tractors, as well as the Volvo VHD vocational truck and tractor. The D13 will be available with 335 hp to 485 hp, with torque levels from 1350 to 1650 lb-ft, and weighs 2250 pounds. Primary applications for the D13 are LTL, truckload, linehaul freight and vocational duties.

The Volvo D16 was first introduced for North American use in 2005. For 2007, it has been updated to the new emissions standards. The D16 will again be available in the Volvo VNL and Volvo VT. For 2007, the D16 will be available with 450 hp up to 600 hp, and with torques from 1650 lb-ft to 2050 lb-ft. The D16 weighs 3070 pounds. The D16 provides maximum power for applications such as heavy haul, owner-operators, and small premium fleets.

Volvo Trucks North America will also continue to offer the popular 15- liter Cummins ISX with 2007 emissions technology as an option in its Volvo VN and Volvo VT highway tractors.

Volvo Engine Features

The new engine family draws upon Volvo's 60-plus years of diesel innovation and experience to deliver sophisticated technology for customers. Some important features of the new Volvo engines include:

   - Ultra High Fuel Injection Pressure (UHFP), with maximum fuel injection
     pressures raised 20% over the Volvo D12 to 35,000 psi.  The higher
     pressures improves fuel atomization and dispersal in the cylinder for
     more efficient combustion and lower emissions.
   - Multiple fuel injections per stroke, utilizing a new proprietary
     actuation strategy for the dual-solenoid unit fuel injector Volvo
     introduced on its 2002 Volvo D12.  This gives extremely precise control
     over fuel injection for emissions control and engine performance.
   - Single-stage variable geometry turbocharger (VGT), with a sliding
     nozzle and electronic actuation.  The VGT delivers enhanced engine
     response and driveability, as well as greater backpressure for the EGR
     system.  The electronic actuator gives more precise control than a
     pneumatic actuator.  Both the turbo bearing housing and the actuator
     are water-cooled.  Volvo first introduced this technology on the D16 in
     2005.
   - Increased peak cylinder pressures allows the engine to extract more
     energy from each drop of fuel.
   - Single-piece, rigid deck cylinder head with four valves per cylinder
     and 38 cylinder head fasteners is built to withstand the higher
     injection and cylinder pressures for increased durability and
     reliability.  Like the engine block, the head is cast with proprietary
     technology in Volvo's own foundry in Skovde, Sweden.
   - Steel cylinder head gasket is also designed for higher combustion
     pressures for increased reliability and durability.
   - Steel "ladder" reinforcement to increase stiffness of main-bearing area
     for today's combustion pressures for increased reliability and
     durability.
   - Rear-mounted gear train with camshaft damper drives the overhead
     camshaft, air compressor, and power steering pump.  The viscous damper
     on the camshaft absorbs the torsional vibrations generated by high-
     pressure fuel injection and routes those vibrations into the flywheel,
     where they are effectively absorbed.  This increases reliability and
     durability, and contributes to longer life for engine-driven
     components.  Placing the gear train at the rear of the engine block
     also improves air flow and cooling around the engine.
   - Volvo Engine Brake (VEB) with high retardation over the speed range,
     integrated into engine for safety and longer foundation brake life.
   - Volvo VECTRO(R) EMS engine electronics with enhanced diagnostics builds
     on the established engine controls and extensive diagnostic
     capabilities of the previous generations of VECTRO.  VECTRO easily
     handles the additional requirements of the DPF's operation.
   - Full-flow oil filtration with deep-flow canisters ensuring full media
     usage.
   - Bypass oil filter uses 5-micron filter to remove fine particles.
   - Low-return, low-flow fuel system cools fuel in the engine, not the fuel
     tank, providing consistent fuel temperature to the injectors regardless
     of extreme summer heat or winter cold, for consistent power and better
     fuel economy.
   - Standard engine mounted primary fuel filter with in-cab water-in-fuel
     warning indicator.

Volvo is an integrated manufacturer of trucks and engines. This expertise allowed Volvo to design the new engines to fit into the Volvo VN, Volvo VT and Volvo VHD trucks with minimal changes. The new engines with their high- capacity cooling systems were fully integrated into each truck's design with the result that the engines require no exterior alterations to the trucks.

Service and Maintenance

Serviceability was also a major consideration in the design of the new Volvo diesels. Although the engines have different displacements, they share a common architecture and design. This means they also share common service and maintenance techniques. Technicians do not have to develop special expertise for each engine. The engines also have improvements to reduce service times and predicted repair times, such as for replacing components.

Oil drain intervals for the new engines are, depending on duty cycle: up to 30,000 miles for the D11; up to 45,000 miles for the D13; and, up to 50,000 miles for the D16.

The new family of engines will be assembled at the Volvo Powertrain North America plant in Hagerstown, MD, on production lines specifically installed for these engines. The Volvo Group has invested $150 million in the Hagerstown plant to bring Volvo engine assembly to North America, with state- of-the-art manufacturing and testing capabilities.

Volvo Trucks North America assembles its Volvo VT, VN and VHD trucks in the United States, at the ISO14001 and ISO9001 certified New River Valley Plant in Dublin, Virginia. Volvo engines for North America are assembled in Hagerstown, Maryland. Volvo sponsors the America's Road Team national highway safety outreach program.

Volvo Trucks North America is part of the Volvo Group of companies, a publicly held company headquartered in Gothenburg, Sweden. With 2005 sales of approximately $31 billion, Volvo's business areas include heavy trucks, buses, construction equipment, marine and industrial drive systems, aerospace, and financial services. In the United States, Volvo shares are listed on NASDAQ and are traded as ADRs .