First Order Received for New Volvo 7700 Hybrid bus

Regulatory News:

A few weeks ago Volvo Buses launched its new Volvo 7700 Hybrid bus model. As a result of hybrid components developed by Volvo and fuel savings of up to 30%, it is an economically attractive hybrid bus.

Many of Europe's bus operators have shown major interest in the new hybrid bus and Volvo Buses has now received its first order. Luxembourg's largest travel and transport company Sales-Lentz has ordered six hybrid buses.

The order was signed in the presence of Luxembourg's Transportation and Environment Minister at a large transportation symposium arranged by Sales -Lentz. The topic discussed during the symposium was how public transport can contribute to fulfilling the Kyoto Protocol.

"One way to contribute is to operate with buses that have lower fuel consumption and thereby lower emissions," says Jos Sales, one of the partners of Sales-Lentz. "But to be able to choose such buses on a large scale, it must be economically viable. This is the reason why we selected Volvo's hybrid buses. Despite the higher purchase price, over time they yield a lower cost per kilometer due to the substantial fuel savings."

The buses will be used in normal route traffic in and around Luxembourg City, preferably on stretches with frequent stops so that the hybrid technology can be fully optimized.

The first bus will be delivered to Sales-Lentz in autumn 2009 and the other five in 2010 when series production begins.

Volvo (STO:VOLVA) (STO:VOLVB) has chosen to develop a parallel hybrid in which a small diesel engine and an electric motor operate individually or together. The bus stores braking energy in batteries and uses this energy to power the electric motor. The diesel engine is shut down at bus stops and the bus drives away from the stop emission free and nearly noiseless powered by the electric motor. When the bus reaches 15-20 kph, the diesel engine starts up again.

October 29, 2008

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Volvo Bus Corporation is one of 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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Contacts:

Per-Martin Johansson
press officer, +46 31 322 52 00
per-martin.johansson@volvo.com

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