AGM Statement

Wolseley PLC
8 December 2000



                                 NEWS RELEASE

                               8 December 2000


                                 Wolseley plc

                                AGM Statement



At the Company's Annual General Meeting, being held in London for the first
time today, Richard Ireland, Executive Chairman of Wolseley plc commented on
trading until 30 November 2000 and the current business outlook.


Current trading


The Group's building materials' distribution companies have made a good start
to the current financial year.


In Europe, generally, the level of repairs, maintenance and improvement
expenditure, which is the principal driver of our European businesses, remains
positive, although the Austrian market remains subdued. The recent adverse
weather conditions in the UK have been unhelpful and continue to have an
adverse impact on major siteworks. Whilst we expect this to continue through
to the end of the calendar year, the overall market prospects remain good. In
Group terms, the effect on profits is not material. As anticipated, the upward
performance trend continues for acquisitions made in the recent past,
particularly Porcher, British Fittings and Broughtons.


In the USA, the general trading background remains beneficial to our
activities. The level of housing starts remains around 1.5 million per annum,
which represents a good level of starts for our businesses. Lumber prices,
which directly affect approximately 10% of the Group's sales, have continued
to soften since the financial year end and have been close to a seven year
low. Unless prices firm in the next month or two, it is likely that this will
result in a slight reduction in the first half trading margin for Carolina
Holdings ('CHI'), the lumber distribution business. However, CHI's trading
profit is expected to be up on the first half of last year primarily due to
the benefits from acquisitions made last year. These acquisitions have
increased the geographic diversity of the business and enabled expansion into
more buoyant housing markets.


The recent weakness of sterling against the US dollar is likely to result in a
more beneficial exchange rate for the sterling translation of US dollar
earnings in the first half. Conversely, it will marginally increase the
Group's gearing and interest charge.


Conditions for the energy businesses continue to be generally difficult and
profits for the first half are expected to be down on the corresponding period
last year. The effect on group trading profits, however, will be immaterial.


Acquisitions and disposals


Consideration, including debt, for acquisitions made in the current year to
date amounts to approximately £70 million including estimated goodwill of £40
million. In a full year, these acquisitions are expected to contribute
additional sales of approximately £150 million. Approximately £48 million of
the acquisitions spend relates to CHI, in line with the strategic development
plans for the Group's lumber distribution business. Most of the remaining
acquisitions spend relates to the further expansion of the UK heavyside
business.


We are continuing to explore the disposal of the energy businesses to better
focus on the development of the Group's building materials' distribution
activities.


Group Chief Executive


Following the retirement of John Young, discussions with prospective
candidates are in progress. The Board looks forward to announcing the
appointment of a high calibre individual, in due course. In the meantime,
shareholders should be reassured that the Group's strong management team
continues to drive the Group forward.


Outlook


We continue to benefit from the increasing scale of the Group's businesses,
the unique and strong positions they hold in their markets and the recent
substantial investments in distribution centres and IT. Business conditions
are expected to remain generally positive for the remainder of the financial
year. In the USA, which accounts for over 60% of Group sales, we expect lumber
prices to increase in the second half.


Overall, we continue to be confident that the Group will achieve further good
progress in the current financial year.


Next update


We plan to issue a further update in advance of the meetings planned with
stockbrokers' analysts in January next year.


                                  ENQUIRIES:


                     Richard Ireland - Executive Chairman

                    Steve Webster - Group Finance Director


                    Wolseley plc - Telephone [phone]


                        Tony Knox - Financial Dynamics

                           Telephone [phone]




                               www.wolseley.com