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Volvo CE Announces Sale of LB Smith Sites

Mon December 20, 2004 - National Edition

Volvo Construction Equipment (Volvo CE) recently sold several of its Southeast Region LB Smith dealerships to three companies: ASC Construction Equipment USA Inc., Flagler Construction Equipment and McClung-Logan.

Volvo CE announced the sale of its LB Smith dealership operations in North Carolina, South Carolina, Georgia, Alabama and the Florida Panhandle, and eastern Tennessee to ASC Construction Equipment USA Inc., Charlotte, NC. The appointment of ASC Construction Equipment USA Inc. (ASC) as an authorized Volvo CE dealer became effective Dec. 3, 2004.

The new dealership will serve its market area from 12 current LB Smith branch facilities in the following states and cities: North Carolina — Raleigh, Charlotte, Asheville; South Carolina —Columbia; Georgia — Savannah, Atlanta, Augusta; Alabama — Mobile, Birmingham, Montgomery; and, Tennessee — Knoxville, Chattanooga.

Volvo CE purchased the assets associated with the Volvo construction equipment distribution business of LB Smith Inc., its distributor for a majority of the East Coast of the United States, in May 2003. Since that acquisition, Volvo CE has continued the operations of the former dealer at existing locations under the name LB Smith to ensure that Volvo customers continued to receive the highest possible standards of product support and service. The sale of the southeastern states territory is part of Volvo CE’s on-going divestment of its LB Smith business.

ASC Construction Equipment USA Inc.

ASC Construction Equipment USA Inc., will be headquartered at 11425 Reames Rd., Charlotte, NC. The company is a subsidiary of Group Auto-Sueco Coimbra, an international company engaged in the distribution, rental, sales and service of construction equipment and a major Volvo CE European dealer for approximately 50 years.

Ron C. Huibers, chairman of ASC Construction Equipment USA Inc., has been associated with the construction equipment industry for approximately 20 years in both dealership and manufacturing roles. He was most recently vice president of global sales process for Volvo CE. Prior to that Huibers was vice president, Sales, of Volvo CE North America.

“We have a very unique opportunity to serve the needs of the local construction industry customers with our dealership,” said Huibers. “With our people and the resources of ASC, we will invest substantially in our business to further leverage the strength of Volvo. Our business will be about growing; keeping our current customers and attracting new customers,” he said.

When asked about the existing personnel, Huibers answered, “First and foremost, it’s the people in our company that assure customer satisfaction. Customers will continue to be served by the same personnel they have come to know over the many years. We will keep existing employees as well as add employees in the parts, service, and sales areas to further support our customers.”

He added, “Our investment will not be in just hard tools and facilities, we will also invest in training for all our employees. We believe these investments will significantly benefit our customers and, in turn, continue to build a position of leadership in our marketplace.”

McClung-Logan Purchases LB Smith Dealerships

On the heels of the ASC and Flagler deals, Volvo Construction Equipment (Volvo CE) and McClung-Logan Virginia LLC, a subsidiary of McClung-Logan Equipment Company Inc., Baltimore, MD, signed an agreement to sell Volvo CE’s LB Smith dealership operations in Virginia to McClung-Logan Virginia.

The agreement between Volvo CE and McClung-Logan Virginia was signed on Dec. 6, 2004. Closing will take place on Dec. 31, 2004.

Under the terms of the agreement between Volvo CE and McClung-Logan Virginia, the latter will serve its new market area from current Virginia LB Smith branch facilities in Glen Allen (Richmond), Salem (Roanoke), Chesapeake, and Wise.

Complete information on the operations of the new dealership will be available upon the completion of the transaction in late December.

McClung-Logan Equipment Company has been a dealer for Volvo construction equipment since 1983 and serves a construction equipment customer base in Maryland, Delaware and northern Virginia. McClung-Logan Equipment Company and Power Equipment Company, Denver, CO, are wholly owned subsidiaries of M-L Holdings Inc.

Volvo CE Sells Tallahassee LB Smith Dealership to Flagler

Volvo CE also announced the sale of its LB Smith dealership operation in Tallahassee, FL, to Flagler Construction Equipment LLC (Flagler), Maitland, FL.

The appointment of Flagler as Volvo CE’s authorized dealer in Tallahassee became effective Dec. 3, 2004.

Flagler became a Volvo CE dealer in April of 2004 with its acquisition of the LB Smith dealership territory of Florida that included branch facilities in Orlando, Ft. Myers, Jacksonville, Ft. Lauderdale and Tampa.

The initial sale of Florida market areas was the first divestment by Volvo CE of the LB Smith equipment distribution territories.

Flagler is headquartered at Maitland Promenade One, 485 N. Keller Rd., Suite 501, in Maitland.