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July 28, 2000
Mitsubishi and Volvo have now signed a contract specifying the conditions for Volvo's acquisition of 19.9 percent of the shares of the Mitsubishi Fuso Truck & Bus Company.

In conjunction with the transformation of the truck and bus division into a subsidiary of Mitsubishi Motors, a new share issue will be implemented. At that time, Volvo will provide a capital contribution to Mitsubishi Fuso Truck & Bus Company totaling about 39.5 billion yen in exchange for newly issued shares corresponding to 19.9 percent of the company's capital and voting rights.

It is estimated that this transaction will take place in July,2001.

In addition to the fixed portion of the purchase price, Volvo may also pay an additional amount depending on the profit performance of Mitsubishi Fuso Truck & Bus Company during the years from 2002 through 2005.

The agreement also clarifies the separation between MMC's truck and bus business, which is the subject of the MMC/Volvo alliance, and MMC's passenger car and light commercial vehicle business, as to which MMC will be cooperation with DaimlerChrysler.

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