Volvo Announces Plans to Import Successful S40 and V40 Models

ROCKLEIGH, N.J., Feb. 18 /PRNewswire/ -- Volvo Car Corporation (Nasdaq: VOLVY -
news) of Gothenburg, Sweden announced plans to expand their North American
product range with the addition of front-wheel-drive S40 sedans and V40
sportswagons. Currently on sale in Europe, the sleek, small platform cars are
part of Volvo's plan to attract younger, family oriented consumers who desire
Volvo's core values in a distinctive, sophisticated and fun-to-drive
automobile.

With 1997 worldwide sales of 114,100 vehicles, the popular and successful entry
level Volvos are slated to play an expansion role in North America.

According to Helge Alten, President and Chief Executive Officer of Volvo Cars
of North America, the Swedish automaker's New Jersey based importer, ``Volvo is
broadening its product offering to reach a wider target audience. We will, of
course, continue our strong focus on our traditional family segment and on
Volvo's well-respected product virtues. These cars provide us with the
opportunity to tap into the pre-family segment. Our retailers and I are
enthusiastic about this development and thank the Volvo Board for this
commitment and investment in the North American market.''

U.S. variants will have a 100.4-inch wheelbase and incorporate a 1.9 liter,
in-line, four-cylinder light pressure turbocharged engine generating 160 hp @
5100 rpm with 170 foot pounds of torque. The vehicles will be manufactured at
Volvo's NedCar assembly plant in Born, The Netherlands.

U.S. introduction is targeted for mid-1999 as 2000 model year vehicles.
Canadian introduction is scheduled for the following year.

SOURCE: Volvo Car Corporation