2005

Mack To Provide More Than 1,400 Trucks by End of 2006

LEHIGH VALLEY, PA (August 1, 2005) - Mack Trucks, Inc. announced today that it has been awarded a contract for more than 1,400 trucks by the United States Postal Service. The award calls for the company to provide 1,180 units of its Vision™ highway model and 226 of its MR vocational model by the end of 2006. The vehicles will be used at over 200 postal service locations across the country.

"We are very proud that we were selected - it's a testament to the quality of the people throughout the Mack organization, as well as the high regard in which our products are held," said Kevin Flaherty, Mack senior vice president of sales. "We're particularly pleased with the number of Vision models in the contract. We're working very hard to grow our highway business. And we view this as a very significant step in that process."

Mack has a long history of doing business with the Postal Service, dating back to the early 1990's. Since then, every new Class 8 truck the Postal Service has purchased has been a Mack.

In addition to the vehicles, the contract calls for the company to provide an array of other services, including training. Mack's dealer and customer training, provided by its North American Institute operation, has consistently been rated number one in the industry.

"We look forward to continuing what has been a productive and successful relationship with Mack," said Kathleen Burt, U.S. Postal Service Purchasing and Supply Management Specialist.

CAPTION: A contract awarded to Mack Trucks, Inc. by the U.S. Postal Service calls for more than 1,400 trucks, including 1,180 of the company's Vision model represented here.

Dedicated to quality, reliability, and total customer satisfaction, Mack Trucks, Inc. has provided its customers with innovative transportation solutions for more than a century. Today, Mack is one of North America's largest producers of heavy-duty trucks, and MACK® vehicles are sold and serviced in more than 45 countries worldwide. All Mack manufacturing locations are certified to the internationally recognized ISO 14001 standard for environmental management systems. Mack is also a proud sponsor of Share the Road, an American Trucking Associations' public information campaign aimed at enhancing the safety of our nation's roadways.

Mack is a member of the Volvo Group, a publicly held company headquartered in Gothenburg, Sweden. With annual sales of approximately $27 billion, Volvo business areas include heavy trucks, buses, construction equipment, marine and industrial drive systems, aerospace, and financial services. In the United States, Volvo shares are listed on NASDAQ and are traded as ADRs (symbol: VOLVY).