Acquisition

Grafton Group PLC
27 June 2002

                               GRAFTON GROUP plc

                               Acquisition Update

Grafton Group plc has acquired six businesses in the United Kingdom since 1
January 2002 adding nine builders merchanting branches and one plumbers
merchanting branch to its network. The largest acquisition was BMB Builders
Merchants Ltd with five branches in Yorkshire. The other five acquisitions were
all single branch businesses, two of which are located in Scotland. The Group
expects to make further similar acquisitions in the next six months, continuing
its successful acquisition strategy in this market.

Seven green field locations were opened in the first half; two Woodie's DIY
stores in Ireland, one builders and four plumbers merchanting branches in the
UK. These locations are trading successfully and are expected to contribute
modestly during the second half.

We are pleased that Group profits in the first half of 2002 remain in line with
expectations despite less favourable trading conditions in the Irish market.


Ends                                                              27 June 2002

Michael Chadwick,
                                               Joe Murray / Grainne O'Brien
Executive Chairman
                                               Murray Consultants
Grafton Group plc
                                               Telephone: (++353) [phone]
Telephone: (++353) [phone]
                                               Ginny Pulbrook

                                               Citigate Dewe Rogerson

                                               Telephone: (++44) [phone]


      This statement is also available on our web site www.graftonplc.com


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