Acquisition Update

Grafton Group PLC
11 December 2002


                               GRAFTON GROUP PLC

                               Acquisition Update


Grafton Group plc has continued to acquire businesses since its interim
announcement on 28 August as part of its ongoing expansion programme.  To date
Grafton has made a further five acquisitions, adding 15 branches to its UK
merchanting network, comprising nine plumbers merchanting and six builders
merchanting branches.


Since the beginning of the year, the Group's 14 acquisitions costing over €90
million, together with new greenfield locations, have added 50 locations to its
UK merchanting network, bringing its total trading locations to 280, with 237 in
the UK and 43 in Ireland.


New acquisitions and greenfield additions are expected to be earnings neutral in
2002 and to contribute to Group profitability in 2003.


The Group's consistent strategic focus on creating a strong merchanting network
in the UK with emphasis on the RMI market provides continuing organic and
acquisition growth opportunities going forward.


We are pleased that Group profits for 2002 remain in line with expectations.


Ends


11 December 2002

Michael Chadwick                               Joe Murray

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


This announcement has been issued through the Companies Announcement Service of
                           the Irish Stock Exchange.


                      This information is provided by RNS
            The company news service from the London Stock Exchange