Trading Statement

Wolseley PLC
12 January 2001




                                 NEWS RELEASE

                               12 January 2001



 Update on current trading for the half year ending 31 January 2001 prior to
                              analysts' briefing

Wolseley is meeting with stockbrokers' analysts for a pre half year end
briefing on the current trading position of the group and the business
outlook. This trading update follows the update issued on 8 December 2000 at
the Annual General Meeting.

Taking into account trading over the additional four weeks since the AGM and
other external events, we remain cautiously optimistic about the general
trading outlook for our principal businesses and continue to expect further
good progress over the remainder of this financial year.

Despite adverse weather conditions in the UK and USA and increased concerns
about the US economy, sales for the month were 10% up on December last year,
excluding discontinued operations. Whilst this rate of sales growth is
slightly below our expectations, the pattern of sales in the latter part of
December appears to support our view that this is principally weather related
and not due to any significant adverse change in the trading environment for
our businesses.

In Europe, generally, we continue to experience a positive momentum in the
repairs, maintenance and improvement market which is the principal driver for
Wolseley Centers and Brossette. The majority of our European operations have
improved their gross and net margin percentages compared to the prior year.

In the USA, Ferguson, Familian Northwest and Carolina Holdings have all
improved their gross margin percentages and should continue to benefit from
gains in market share. Lumber prices remain at historically low levels but we
continue to expect an improvement in the position around the Spring. Whilst
clearly addressing concerns that the US economy might be slowing, the
unexpected interest rate reduction earlier this month should have a positive
effect in the latter part of our financial year on US housing market activity
which remains at a good level for our businesses. Mortgage interest rates are
at favourable levels which should help to bolster consumer confidence.

Consideration, including debt, for acquisitions made in the current year to
date amounts to approximately £75 million including estimated goodwill of £44
million. In a full year, these acquisitions are expected to contribute
additional sales of approximately £160 million.

We continue to explore the disposal of the energy businesses.





                                  ENQUIRIES:

                     Richard Ireland - Executive Chairman

                    Wolseley plc - Telephone [phone]

                    Steve Webster - Group Finance Director

                    Wolseley plc - Telephone [phone]

                        Tom Wyatt - Financial Dynamics

                           Telephone [phone]



                               www.wolseley.com