Interim Management Statement

Wolseley PLC
28 November 2007


                                  NEWS RELEASE
                                28 November 2007

                                  Wolseley plc
                          Interim Management Statement

Wolseley plc, the world's largest specialist trade distributor of plumbing and
heating products to professional contractors and a leading supplier of building
materials, is today issuing its first Interim Management Statement to coincide
with its Annual General Meeting at noon today, at Haberdasher's Hall, 18 West
Smithfield, London, EC1A 9HQ. In accordance with normal practice, a pre-close
half year trading update will be issued on 21 January 2008.


Summary for three months ended 31 October 2007:

Group
- Revenue up more than 5%, c.8% in constant currency
- Trading profit down c.12%, c.9% in constant currency
- Profit before tax and amortisation and impairment of acquired
  intangibles down almost 15%, c.10% in constant currency
- Operating cash flow more than double the prior year
- 10 bolt on acquisitions completed between 1 August 2007 and 28
  November 2007 for an aggregate consideration of approximately £170 million.

North America
- Revenue down c.10%, c.3% in constant currency
- Trading profit down c.30%, c.25% in constant currency
- Further action taken to adjust cost base - US reduction in headcount
  of 1,700 people. Around 1,300 further reductions planned in the second 
  quarter. Combined annual savings relating to these headcount reductions of 
  £60 million.

Europe
- Revenue up more than 25%
- Trading profit up more than 15%
- Good performance in UK and Nordic region partially offset by underperformance
  in France and Central and Eastern Europe.


Chip Hornsby, Group Chief Executive of Wolseley, said:

'The Group continues to take swift and decisive action in the more challenging
business conditions. Although sales trends and the outlook are uncertain, we
remain committed to our strategy. Whilst keeping a tight control on costs, we
will continue to invest to create competitive advantage. We remain confident
that with our size, scale and financial strength, we will emerge from this
slowdown as a stronger competitor with an excellent platform for future growth.'


Overview

For the three months ended 31 October 2007, the Group's results continued to be
affected by the slowing US housing market, low consumer confidence following
uncertainty relating to liquidity in global financial markets and the weakness
of the dollar. Whilst the global liquidity squeeze has had some impact on
European consumer confidence, the effect has been principally in the USA. Sales
trends over this period in both North America and Europe have been difficult to
interpret and have not been consistent from month to month. Against this
background, the Group has taken further action to adjust its cost base and has
continued to focus on exploiting opportunities for profitable organic growth,
value-enhancing acquisitions and strong cash flow generation.

Group revenue in the three months ended 31 October 2007, including acquisitions,
increased by more than 5% compared to the corresponding period in the prior
year. Trading profit was down by around 12%. In constant currency, revenue and
trading profit would have been around 3% higher than the reported figures in
sterling.

In response to more challenging conditions, the Group has reduced headcount,
reduced indirect costs, realigned its management structure and re-established
priorities in the businesses for the current year.

In the three months ended 31 October 2007, the Group reduced headcount in its US
operations by a further 1,700 people. There will be a further 1,300 headcount
reductions in the second quarter. The combined annual savings relating to these
headcount reductions will be £60 million. When complete, the cumulative
headcount reductions, since their peaks, will represent around a third of the
Stock workforce and more than 10% of the Ferguson workforce.

Action is also currently being taken to streamline central management resource
to focus attention on specific opportunities within each continent and to
accelerate decision making in response to local market conditions. As a result,
the roles of Chief Business Development Officer and Chief Operations Officer are
being eliminated. Therefore, by mutual agreement, Adrian Barden and Larry
Stoddard, the holders of these roles, are leaving the Group. The initiatives in
relation to private label, managing the Group's expense base and developing the
supply chain will be the responsibilities of the North American and European
continental structures.

The rigorous focus on cash flow and working capital improvement continues.
Operating cash flow for the first three months of the year more than doubled
compared to the equivalent period in the prior year. As a result of the recent
strong cash flow generation, the interest charge for the first quarter, at
around £30 million, is only marginally up on the corresponding period, despite
higher interest rates and the full quarter impact of financing the acquisition
of DT Group.

The Group's balance sheet remains strong, with net debt at 31 October 2007
around 3% higher than at 31 July 2007 following bolt-on acquisitions made during
the period, giving gearing of 72%, unchanged since 31 July 2007.

Further details of market conditions and financial performance in each of the
Group's businesses are set out below.


North America

In North America, revenue in the three months ended 31 October 2007 in sterling,
including acquisitions, decreased by almost 10% compared to the corresponding
period in the prior year. Trading profit was down by just over 30% reflecting a
first quarter loss reported by Stock and currency translation. In constant
currency, revenue and trading profit would have been around 6% higher than the
reported figures in sterling.

The Group's US results have been affected by the continuing decline in US
housing starts, falling consumer confidence and a weakening US dollar.

Ferguson continued to gain market share and its financial results benefited from
the commercial and industrial sector that continues to grow and accounts for
over 60% of its revenue. However, Ferguson was affected by the weakening new
residential market and a slowing RMI market. Revenue in local currency for the
three months ended 31 October 2007 was up around 5% due to acquisitions, with
organic revenue growth being slightly negative. Organic growth was marginally
negative in August and October, but positive in September. Local currency
trading profit for the quarter was marginally higher due to acquisitions. The
trading margin was slightly lower, reflecting increasing price competition and
lower revenue growth. In addition to the 1,150 headcount reduction in the prior
year, a further programme of cost reduction has been instigated with the loss of
an additional 200 employees in the three months ended 31 October 2007 and 1,300
planned in the second quarter. Once these headcount reductions are completed,
Ferguson's headcount will have been reduced by more than 10% from its peak.

At Stock, local currency revenue and trading profit have been impacted by the
continuing slowdown in the new residential market, which has also created
increased price competition. Housing starts in the USA have fallen 22% from an
average annual rate of around 1.62 million in the three months ended 31 October
2006 to 1.26 million in the three months ended 31 October 2007. There continue
to be significant regional variations.

Stock's revenue is down by 25%, principally reflecting a 22% decline in organic
sales volumes, including the effect of previous branch closures and price
fluctuations in lumber and panels which reduced revenue by around 1%. Stock is
now cumulatively reporting a trading loss for the three month period following
losses in September and October. In addition to the 3,500 headcount reduction in
the prior year, a further major programme of cost reduction has been instigated
with the loss of an additional 1,500 employees in the three months ended 31
October 2007. Stock's headcount has been reduced by around one-third from its
peak and significant further reductions are unlikely. Acquisitions contributed
around $30 million (2%) to revenue growth.

The Canadian residential market continues to hold up well and has not been
significantly impacted by the factors affecting the US housing market. Wolseley
Canada achieved modest local currency revenue growth, although trading profit
was lower, following C$3.5 million (£1.6 million) of branch closure costs.


Europe

Whilst the global liquidity squeeze has had some impact on European consumer
confidence, the effect has not been as significant as that in the USA. Although
the UK housing market is showing signs of softening due to lower liquidity and
reduced consumer confidence, the weakness in some other European housing markets
is the result of other local factors, outlined below. Around 70% of the Group's
European business relates to the RMI and commercial and industrial markets where
the fundamentals are structurally more sound.

Revenue in sterling for Europe, including acquisitions, increased by more than
25% in the three months ended 31 October 2007, whilst trading profit was up more
than 15%. Excluding DT Group, which was acquired on 25 September 2006, European
revenues were up by almost 5% whilst trading profit was over 10% lower due to a
poor performance in August and September in France and some initial anticipated
disruption caused by IT implementation in Central and Eastern Europe.

Revenue for the UK and Irish businesses increased by around 5%, the majority of
which was organic growth. Trading profit was up by a similar amount, despite a
reduction in trading profit in Ireland. The overall trading margin improved
marginally on the equivalent period in the prior year.

There are increasing signs that the UK housing market is slowing in response to
the lower availability and increased cost of mortgage financing. However, demand
for UK housing continues to exceed supply and the market is currently more
stable structurally than the US housing market. There are indications of the UK
RMI market weakening in response to deteriorating consumer sentiment and tighter
credit conditions. Signals from the Group's UK businesses remained mixed.
Bathstore, geared to servicing the consumer, reported strong sales trends in the
first quarter, but those of our trade businesses that are more heavily focused
on the residential RMI market are showing signs of softening as that market
becomes more challenging. Government expenditure on social housing, health and
education continued to underpin construction spending in the UK.

In Ireland, housing starts are over 30% down on the equivalent quarter of the
prior year and the RMI market is now being affected.

Wolseley's French businesses had a slower start to the financial year, although
sales and profits were higher in October than the corresponding period in the
prior year. The French heavyside business lost some market share due to the
acceleration of the new NDC implementation and further restructuring and
centralisation of functions in the first quarter, which caused some additional
disruption. Revenue for the three months ended 31 October 2007 is marginally
down on the prior year and underlying trading profit is down by more than 40%,
before charging one-off restructuring costs of €4 million (£2.8 million)
relating to headcount reductions.

Markets in the Nordic region have generally held up well, although sales to the
Danish new housing and DIY markets, which account for around 18% of the Group's
Nordic revenues, are slowing in response to higher interest rates. Other housing
markets in the Nordic region appear unaffected. DT Group continues to grow
strongly and for the three months ended 31 October 2007 reported revenue, in
sterling, of £571 million with a trading margin of over 7%.

The Group's Central and Eastern European businesses showed high single digit
revenue growth as a result of good market outperformance in Switzerland and the
Netherlands, and of acquisitions. These acquisitions are designed to increase
critical mass in the region, which will have a positive impact on future trading
margins and return on capital. Trading profit in the quarter was lower as a
result of some business disruption and the additional costs associated with the
new IT systems implementation. The extent of the disruption was in line with
expectations and diminished over the period.


Acquisition Update

Since the beginning of the financial year on 1 August 2007, a total of 10
bolt-on acquisitions in Europe and North America have been completed for an
aggregate consideration of approximately £170 million. These 10 acquisitions are
expected to add approximately £219 million to Group revenue in a full year and
will be beneficial to the Group's trading margin in the current financial year.

In addition, on 27 November 2007, Wolseley Eastern Europe a.s signed an
agreement, conditional upon obtaining Slovak competition clearance, to acquire
Gama Myjava s.r.o. from Mr. Jan Holi and Mr. Pavol Majdlen and the business of
Gama Bohemia from Gama Bohemia s.r.o. (together 'Gama'). Gama is a plumbing,
heating and sanitaryware distributor operating from eight branches in Slovakia
and five branches in the Czech Republic. In the year ended 31 December 2006,
Gama had consolidated revenue of SKK741.6million (£16.0 million) and gross
assets of SKK214.0 million (£4.6 million) at that date. Completion of this
acquisition is expected early in 2008. This acquisition supports Wolseley's
strategy of increasing critical mass in Central and Eastern Europe.


Outlook

The Board anticipates that business conditions in a number of the Group's
markets will become more challenging over the next few months.

In the USA, the housing market is likely to deteriorate further until the
current high levels of unsold inventory have declined and the full effects of
problems in the sub-prime market have been assimilated. These conditions,
together with reduced availability of credit, are expected to put pressure on
the RMI market and its recovery will depend on consumer sentiment and the
overall health of the US economy. The commercial and industrial market is
expected to show growth, albeit at lower rates, for the majority of the
financial year given the longer lead times of many large projects within this
sector. The Group expects to continue to drive competitive advantage and
increased market share from the distribution centre network and to exploit
opportunities arising from the impact that weakening markets will have on
competitor positions.

In Europe, there are signs of weakening in some housing markets, but the
majority of the Group's activity in Europe is driven by the RMI and commercial
and industrial segments. In general, these are structurally more sound and
should offer opportunities for growth for the year as a whole. The RMI market in
the UK is likely to soften in the short term as a result of weakening consumer
sentiment.

The Group will continue to carefully monitor market conditions and take swift
and decisive action to realign its cost base and to take a more cautious
approach to limit capital expenditure, where necessary. The Group is in a strong
financial position and will continue to pursue its strategy of growing
organically and by acquisition, driving competitive advantage through leveraging
its scale and size.



There will be a conference call for analysts/investors at 0830 (UK time) today:

UK free phone dial-in number:          0800 559 3272
US free phone dial-in number:          1866 239 0753
Rest of the World dial-in number:      [phone]

Password:                              Wolseley/4066822

Slides relating to the call will be available on www.wolseley.com.

The call will be recorded and available on www.wolseley.com after the event. It
will also be available for playback until 4th December 2007 on the following
numbers:

UK free phone number:                   0800 559 3271             4066822#
US free phone number:                   1866 883 4489             4066822#
UK/European replay dial-in number:      [phone]       4066822#



Exchange Rates

The average profit and loss account translation rate for the three months to 31
October 2007 was $2.03 to the £1 compared to $1.89 for the comparable period
last year, a weakening of 6.8%, and €1.45 to the £1 compared to €1.48, a
strengthening of 1.8%, compared to the prior year.

Trading profit, a term used throughout this announcement, is defined as
operating profit before the amortisation and impairment of acquired intangibles.
Trading margin is the ratio of trading profit to revenue stated as a percentage.


ENQUIRIES:

Guy Stainer                                         [phone]
Group Investor Relations Director                   [phone]

John English                                        [phone]
Vice President, Investor Relations, North America   [phone]

Brunswick                                           [phone]
Andrew Fenwick
Kate Miller




Notes to Editors

Wolseley plc is the world's largest specialist trade distributor of plumbing and
heating products to professional contractors and a leading supplier of building
materials in North America, the UK and Ireland and Continental Europe. Group
revenue for the year ended 31 July 2007 was approximately £16.2 billion and
operating profit, before amortisation and impairment of acquired intangibles,
was £877 million. Wolseley has around 77,000 employees operating in 28 countries
namely: UK, USA, France, Canada, Ireland, Italy, The Netherlands, Switzerland,
Austria, Czech Republic, Hungary, Belgium, Luxembourg, Denmark, Sweden, Finland,
Norway, Slovak Republic, Poland, Romania, Croatia, San Marino, Panama, Puerto
Rico, Trinidad & Tobago, Mexico, Barbados and Greenland. Wolseley plc is listed
on the London and New York Stock Exchanges (LSE: WOS, NYSE: WOS) and is in the
FTSE 100 index of listed companies.


Certain information included in this release is forward-looking and involves
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by forward-looking statements. Forward-looking
statements include, without limitation, projections relating to results of
operations and financial conditions and the Company's plans and objectives for
future operations, including, without limitation, discussions of expected future
revenues, financing plans and expected expenditures and divestments. All
forward-looking statements in this release are based upon information known to
the Company on the date of this report. The Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a result of
new information, future events or otherwise.

It is not reasonably possible to itemise all of the many factors and specific
events that could cause the Company's forward-looking statements to be incorrect
or that could otherwise have a material adverse effect on the future operations
or results of an international Group such as Wolseley. Information on some
factors which could result in material difference to the results is available in
the Company's SEC filings, including, without limitation, the Company's Report
on Form 20-F for the year ended 31 July 2006.



The financial calendar is shown below with a change to the date for the trading
update in July 2008. This will now take place on the 16th July 2008 (previously
scheduled for 14th July).

                       FINANCIAL CALENDAR FOR 2007/2008

2007

28 November    -   Annual General Meeting and Interim Management Statement
30 November    -   Final dividend payment date

2008

21 January     -   Trading update for five months to 31 December 2007
17 March       -   Interim Results for six months to 31 January 2008
26 March       -   Shares quoted ex-dividend
28 March       -   Record date for final dividend
21 May         -   Interim Management Statement
30 May         -   Interim dividend payment date
16 July        -   Trading update for 11 months to 30 June 2008
31 July        -   Financial year end
22 September   -   Announcement of Preliminary results for year to 31 July 2008
1 October      -   Shares quoted ex-dividend
3 October      -   Record date for final dividend
7 November     -   Final date for DRIP elections
18 November    -   Annual General Meeting and Interim Management Statement
1 December     -   Final dividend payment date



A copy of this release, together with all other recent public announcements can
be found on Wolseley's web site at www.wolseley.com. Copies of the presentation
given to institutional investors and analysts are also available on this site.


                                    - ENDS -




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