Volvo: Government-Owned Fouriertransform to Invest 60 MSEK in the Fuel Cell Company Powercell Sweden AB

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

Volvo (STO:VOLVA)(STO:VOLVB):

The Swedish government`s venture capital company for the automotive industry,
Fouriertransform, is now making its first investment. SEK 60 M will be invested
in Powercell Sweden AB, which develops, produces and sells fuel cells, fuel
reformers and auxillary power units.

"We regard it as very positive that Powercell will gain an additional strong
financial owner. This will enable us to be a long-term partner in heavy
industrial development projects," says Per Wassén, Chairman of Powercell Sweden
AB and Investment Director at Volvo Technology Transfer.

Fouriertransform`s investment will be made by a directed share issue, i.e. money
is injected directly into the company in exchange for new shares. Through Volvo
Technology Transfer, AB Volvo will remain as the largest owner of Powercell
Sweden AB, with more than 40 percent of the shares. The other owners are OCAS,
Midroc New Technology and Fouriertransform.

"We have come to know the enterprise and the people behind it, and are looking
forward to a trustful cooperation. We are convinced that this is a good
investment for the industry, with potential for high profitability, says Hans
Golteus, Acting CEO of Fouriertransform.

As recently as the beginning of July, the major companies Midroc and OCAS, along
with the Swedish Energy Agency and Volvo Technology Transfer, made a joint
investment of SEK 200 M in Powercell Sweden AB in Göteborg. An investment which
will generate 100 new jobs in Göteborg over the next three years.

"We are busy staffing the company and have received more than 1,000 highly
qualified applicants for our advertised jobs," says Per Wassén, who also reveals
the location of Powercell Sweden`s new premises.

"All resources, from management, marketing and sales to development, production,
purchasing and the laboratory will be collected under one roof, close to the
abutment of the Älvsborg Bridge on Hisingen in Göteborg. This will make
Powercell the largest fuel cell plant in northern Europe," says Per Wassén.

A fuel cell can be compared with a small battery that operates on hydrogen gas.
During a chemical reaction, the hydrogen gas is converted to electricity with no
other waste but water. To resolve the issue of hydrogen gas accessibility,
Powercell will initially produce hydrogen gas from such existing fuels as
biofuel and gasoline or diesel. Compared with normal diesel or gasoline-operated
electrical aggregates, Powercell`s product will generate considerably less
carbon dioxide emissions, and no emissions whatsoever of particles, carbon
monoxide and nitrogen oxides. The fuel cells are also more efficient, smaller
and more silent.

Powercell Sweden`s product has been developed by Volvo Technology for more than
15 years and is based on two patented components: a fuel converter (reformer)
and a PEM fuel cell - the type of fuel cell most often used in transport
applications. The fuel converter produces hydrogen gas from bio fuels such as
ethanol, DME (Dimethyl ether), biogas, methanol and biodiesel, but also from
regular diesel or gasoline.

Examples of application areas include electrical aggregates for households,
trucks, boats, radio masts at remote locations and electrical hybrid vehicles.

Fouriertransform AB (FTAB) is a venture capital company, established and owned
by the Swedish State for investments in companies in the automotive industry.
FTAB has a commercial mission, and its investments shall generate market return
in the long term.

Powercell Sweden AB develops and distributes advanced fuel cell systems for the
transport industry and selective high technology markets. The company was
founded in 2008 as a subsidiary to Volvo Technology Transfer. The technology
behind Powercell`s fuel cells has been developed within the Volvo Group`s
company Volvo Technology.

Volvo Technology Transfer is a subsidiary of the Volvo Group. Volvo Technology
Transfer develops and supports new business that is relevant to the Volvo Group.
This comprises investing in companies and projects that are of strategic,
technical and commercial interest.

Midroc New Technology, a part of Midroc Europe, develops and invests in future
technologies within Clean Tech and BioMed. Midroc is owned by Mohammed H.
Al-Amoudi who among other companies owns Preem Petroleum, Swedish Petroleum
Exploration and Västra Hamnen Funds.

OCAS is an advanced market-driven material research centre based in Belgium.
OCAS` investment in Powercell Sweden AB was taken up by the investment fund
Finindus. OCAS will support Powercell Sweden with the development and optimizing
of materials and their implementations.

The Swedish Energy Agency operates in various sectors of society to create
conditions for an efficient and sustainable energy use and a cost-effective
Swedish energy supply.

October 27, 2009

The Volvo Group is 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. The Volvo Group, which employs about 100,000 people,
has production facilities in 19 countries and sells their products in more than
180 markets. In 2008 annual sales of the Volvo Group amounted to about SEK 300
billion. The Volvo Group is a publicly-held company headquartered in Göteborg,
Sweden. Volvo shares are listed on OMX Nordic Exchange Stockholm. For more
information, please visit www.volvogroup.com or www.volvogroup.mobi if you are
using your mobile phone.

This information was brought to you by Cision http://www.cisionwire.com

Per Wassén, Investment Director Volvo Technology Transfer
and Chairman of Powercell Sweden AB
tel +46 (0)708-960 055
or
Hans Golteus, Acting CEO Fouriertransform
tel +46 (0)70-341 22 62
or
Mårten Wikforss, Press Contact, AB Volvo
tel +46 (0)31-66 11 27

Copyright Business Wire 2009