Volvo Hybrid Double Deck Buses Unveiled at Historic Venue

STOCKHOLM, Sweden--(Business Wire)--
Regulatory News:

The historic venue of Alexandra Palace in London provided a fitting backdrop
today (Tuesday 7th July) for the world debut of the first of a new generation of
highly fuel efficient and environmentally friendly Volvo (STO:VOLVA) (STO:VOLVB)
Hybrid Double Deck buses to Arriva London.

A total of six Volvo B5L Hybrid Double Deck buses have recently entered service
on Route 141 in the UK`s capital city and representatives from Volvo Bus and
Arriva London, together with other stakeholders gathered to formally mark
another historic occasion at the Alexandra Palace.

Back in 1936 the BBC made the first public broadcast to the world of High
Definition Television - then a new technology which was to subsequently become
part of everyday life worldwide. More than seventy years on, hybrid technology
now moves from development phase to full commercial reality, as part of the
drive to deliver significant reductions in fuel consumption and emissions in the
public transport arena.

The buses features the parallel hybrid I-SAM technology, developed across the
entire Volvo Group. It is a hybrid in that the bus is powered by a combination
of an electric motor and a diesel engine, with the system being parallel in that
it can be powered by either source independently, or in combination drawing on
both power sources at the same time.

The new Hybrid Double Deck buses offer savings both in terms of fuel consumption
and emissions. Evidence from test tack development and in service field trials
with Arriva London show significant savings in fuel consumption and carbon
dioxide (C02) emissions as well as reduction in Nitrous Oxides and particulates.

The introduction of the new Volvo B5L Hybrid Double Deck bus follows hot on the
heels of the introduction of the Volvo 7700 Hybrid Single Deck in May in Volvo`s
home city of Gothenburg in Sweden. It is also part of an on-going programme
across the entire Volvo Group, which includes Trucks, Construction Equipment as
well as Buses. With longer intervals between bus stops in Gothenburg, the
expected fuel savings there was 20-25%. The first months of service shows better
then expected fuel savings, about 30%.

Speaking at the handover ceremony, Senior Vice President Volvo Buses Europe,
Stefan Nordström said, "We are delighted to formally handover our first six
Hybrid Double Deck Buses to Arriva London. The advanced parallel hybrid
technology on these vehicles, unique to the Volvo Group, offers significant fuel
savings and resultant C02 reductions, as well as significant air quality and
noise benefits for other road users."

He added, "The continuing trend in ever higher fuel prices means that the
payback period on the incremental capital cost of this technology is being
further reduced, making investment in hybrid vehicles a viable option for an
ever increasing number of cities in Europe and beyond."

Accepting delivery of the first Volvo Hybrid Double Decks, Managing Director of
Arriva London Mark Yexley commented, "With the support of Transport for London,
this is a pioneering project for Arriva to be involved with. These six vehicles
will provide an excellent opportunity to assess the benefits and the whole life
cost proposition of hybrid technology in a real life day to day operating
environment."

Download high resolution images:
http://icp.llr.se/CumulusE_Z/VBC_ImageGallery/Login2.jsp?assets=Volvo_B5TL_Hybrid_London_2009_02.tif;Volvo_B5TL_Hybrid_London_2009_01.tif;Volvo_B5L_Hybrid_London.tif

For more information visit the Volvo Group`s website:
http://www.volvo.com/group/global/en-gb/responsibility/envdev/alt_drivelines/hybrid_tech/hybrid_videos.htm

July 7, 2009

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Volvo Bus Corporation is one of the the world`s largest manufacturer of large
buses and coaches. The range comprises complete vehicles, chassis, bus bodies,
transport system solutions for metropolitan traffic, leasing, financing and
service contract maintenance. Volvo Bus Corporation 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.

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Volvo
Christina Fjellman, Senior Vice President Corporate Communications
+46 702 696010

Copyright Business Wire 2009