AGM Statement

Grafton Group PLC
11 May 2004


                               GRAFTON GROUP PLC

                             ANNUAL GENERAL MEETING

                     RADISSON SAS ST. HELEN'S HOTEL, DUBLIN

                              TUESDAY, 11 MAY 2004



                  STATEMENT BY THE CHAIRMAN, MICHAEL CHADWICK


Grafton continues its successful strategy of building on its strong market
positions and brands in the UK and Ireland by participating in both the ongoing
consolidation opportunities in the market and in greenfield developments. For
the first quarter of 2004, in line with our expectations, the Group has returned
good growth in earnings.


Once again the UK merchanting businesses have yielded strong acquisition led
growth together with increased like for like sales and improving operating
margins in a favourable trading environment. The businesses acquired during
2003, in particular the two larger acquisitions Jackson Building Centres and
Plumbline Supplies, continue to trade strongly. Since the start of the year the
Group has completed 6 acquisitions in the UK adding circa €60 million to Group
turnover on an annual basis. EuroMix, the Group's silo mortar division,
continues to increase sales and profitability. A new plant in Southampton, its
seventh in the UK, is on schedule to open in July. The Group now trades from
over 290 locations in the UK.


Buoyant trading conditions persist in Ireland. The Group's Irish merchanting
business continues to benefit positively and this is reflected in good like for
like sales growth and a further improvement in profits. The Telford builders
merchanting business acquired in October 2003 is performing strongly. Woodie's
DIY continues to show like for like sales growth and the two stores opened
during 2003 are trading well. The store opened in Clonmel during March this year
also had a good start to trading. Woodie's DIY now trades from 17 locations with
the new flagship Naas Road, Dublin store on schedule to open in June. Further
store openings already announced will bring the store network to 22 stores.


The Group remains confident of continued growth in profits and earnings per
share in 2004.


Ends                                                               11 May 2004

Michael Chadwick                                                    Joe Murray
Executive Chairman                                          Murray Consultants
Grafton Group plc                             Telephone: (++353) [phone]
Telephone: (++353) [phone]

Colm o Nuallain                                                 Ginny Pulbrook
Finance Director                                        Citigate Dewe Rogerson
Grafton Group plc                            Telephone: (++44) [phone]
Telephone: (++353) [phone]


           A copy of this statement is also available on our website
                              www.graftonplc.com


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