Geely Settles Commercial Terms for Acquisition Of Volvo Car Corporation

December 23, 2009

HANGZHOU, China, Dec. 23 /PRNewswire-Asia/ — Zhejiang Geely Holding Group
Co., Ltd. (ZGH), a privately-owned Chinese automotive group, today announced
it has settled all substantive commercial terms with Ford Motor Company
relating to the proposed acquisition of Volvo Car Corporation.

Geely, one of the fastest-growing car manufacturers in China, now expects
to sign a definitive stock purchase agreement with Ford in the first quarter
of 2010, paving the way for potential completion of the transaction in the
second quarter of the year, subject to regulatory approvals. Further
discussions will focus on finalization of documentation and financing, as well
as government approvals.

The agreement on commercial terms follows detailed discussions with Ford,
which have intensified since Geely was named the preferred bidder for Volvo in
October of this year.

In recent weeks, Geely has also held constructive meetings with Volvo
management, labour representatives and government officials in Sweden and
Belgium — where its key manufacturing plants are based. “Geely is committed
to work with all stakeholders to complete the transaction in the best interest
of all parties,” said Li Shufu, Chairman of ZGH.

Should a stock purchase agreement be finalised, Volvo will retain its
leadership in safety and environmental technologies, and will be uniquely
positioned as a world leading premium brand to exploit opportunities in the
fast growing China market.

More details will be made available once the expected definitive agreement
is signed in the first quarter of 2010.

About Zhejiang Geely Holding Group Co., Ltd.

Zhejiang Geely Holding Group Co. Ltd. was founded in 1986 with its
headquarters in Hangzhou, China. Geely Holding Group and its associated
companies have established operations that span the automotive value chain,
from research, development and design to production, sales and servicing.
They are a fully integrated independent auto manufacturer producing cars,
engines and transmissions. Today, they are one of China’s fastest growing
automotive manufacturers, as well as the industry’s leading privately held

    For more information, please contact:

    Mr. Yuan Xiaolin
    Zhejiang Geely Holding Group
    Phone:  +86-571-2813-6666
    Mobile: +86-1371-806-4551
    Email:  ma@geely.com

    Mr. Tim Burt
    Brunswick Group LLP
    Phone:  +44-20-7396-7497
    Mobile: +44-7834-502-497
    Email:  geely@brunswickgroup.com

    Mr. Anders Fogel
    Brunswick Group LLP
    Phone:  +46-8-4103-2181
    Mobile: +46-709-627-842
    Email:  geely@brunswickgroup.com

SOURCE Zhejiang Geely Holding Group Co., Ltd.

Source: newswire

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