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Six months ended June 30, 2008

Volvo Aero entered into two major engine programs

In July, it was announced that Volvo Aero has entered into an agreement with aircraft engine manufacturer Pratt & Whitney to join P&W’s Geared Turbofan engine program. Volvo Aero will be responsible for three major components in the aircraft engines for both the Mitsubishi Regional Jet (MRJ) and the Bombardier CSeries. For Volvo Aero the agreement is expected to result in sales of SEK 50 billion over 40 years, the company’s largest involvement in a commercial engine program ever.

Also in July, it was announced that Volvo Aero and Rolls-Royce have entered into a risk and revenue sharing agreement for the Trent XWB engine for the Airbus A350XWB aircraft, under which Volvo Aero will develop and manufacture the intermediate compressor case, a key engine component. Volvo Aero estimates the value of the contract to be approximately SEK 40 billion over 40 years.

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