Volvo Group ; Nine Months Ended September 30, 2008

STOCKHOLM, Sweden October 24, 2008: Volvo (STO:VOLVA)(STO:VOLVB)Net sales increased by 2% to SEK 69.6 billion (68.4) in the third quarter

In the third quarter, operating income declined by 37% to SEK 3,177 M (5,010)

In the third quarter, basic and diluted earnings per share declined by 36% to SEK 0.98 (1.54)

Operating cash flow in Industrial operations was negative in amount of SEK 6.1 billion (neg. 0.4)

Significant impact from increased costs for raw materials and components

Increased research and development efforts ahead of new emission regulations and for hybrid projects

Slowdown in demand and restructuring costs

Volvo Group
	�	Third quarter			�	First nine months
�	�	2008	�	2007	�	2008	�	2007	�	Change,%
Net sales Volvo Group, SEK M	�	69,604	�	68,367	�	226,713	�	200,849	�	13	�
Operating income Volvo Group, SEK M	�	3,177	�	5,010	�	16,850	�	16,457	�	2	�
Operating income Industrial operations, SEK M	�	2,786	�	4,555	�	15,691	�	15,186	�	3	�
Operating income Customer Finance, SEK M	�	391	�	454	�	1,159	�	1,270	�	(9	)
Operating margin Volvo Group, %	�	4.6	�	7.3	�	7.4	�	8.2	�	�
Income after financial items, SEK M	�	2,898	�	4,571	�	16,520	�	15,948	�	4	�
Income for the period, SEK M	�	2,000	�	3,149	�	11,364	�	10,935	�	4	�
Diluted earnings per share, SEK	�	0.98	�	1.54	�	5.58	�	5.37	�	�
Return on shareholders' equity, rolling 12 months, %	�	�	�	�	�	18.9	�	17.3	�	�