Volvo Aero selected for the Mako Trainer Program

Volvo Aero Corporation has been selected as a major contributor to the 
General Electric Aircraft Engines (GEAE) F414M/MT engine for the EADS 
Mako trainer.

A Memorandum of Understanding, MoU, has been signed between GEAE and 
Volvo Aero Corporation. The MoU involves cooperation on development 
activities, hardware production, final assembly and testing, up to a 
total engine value of 30%.

The long-term partnership with GEAE since 1982 on the RM12 engine 
program for the Swedish Gripen fighter gave Volvo Aero Corporation a 
prominent role in the Mako program. The Mako HEAT is a candidate for 
the ongoing Advanced European Jet Pilot Training (AEJPT) program. The 
Mako HEAT will be powered by a GEAE F414MT engine, the single-engine 
derivative of the F414, which has been de-rated about 25 per cent to 
provide low life-cycle cost. A full-rated F414M would be installed into 
the LCA derivative for export sales.

In 2000 Volvo Aero and GEAE entered into a new major military 
cooperation agreement. The cooperation involves the F414 engine for the 
F/A-18E/F Super Hornet. Volvo Aero manufactures structural and rotating 
components in the engine's fan and compressor area. The chosen 
components are part of Volvo Aero's area of specialization.

December 6, 2003

For further information, please contact Bjorn Astrand, 
tel. +46 70 569 0451.

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.