$325million Private Placement

Grafton Group PLC
27 June 2005


                               Grafton Group plc

                         $325 Million Private Placement



Grafton Group plc announces completion of a $325 million Private Placement of 7
year and 10 year Senior Notes with a group of US investors.

The proceeds have been converted into sterling and will be used principally to
refinance Group borrowings and for general corporate purposes.

The placement was arranged by Bank of Ireland's Corporate Banking and Global
Markets divisions in association with Macquarie Securities (USA) Inc.

Commenting on the Private Placement Mr. Colm o Nuallain, Grafton Finance
Director, said:

'We took advantage of a new source of capital from the buoyant US Private
Placement market and received a very positive response from investors while at
the same time improving the strength of the Group's Balance Sheet, lengthening
the age profile of the underlying debt and reducing the average cost of borrowed
funds.'


ENDS                

27 June 2005

Colm o Nuallain
Finance Director
Grafton Group plc
Telephone     (+353) [phone]

Joe Murray
Murray Consultants
Telephone     (+353) [phone]




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