AGM Statement

Grafton Group PLC
08 May 2006




                               Grafton Group plc

                Statement by the Chairman, Mr. Michael Chadwick

                         To the Annual General Meeting

                               Held on 8 May 2006

Grafton Group is pleased to report that trading for the four months to the end
of April 2006 has been in line with Group expectations.

The Irish Merchanting business has had an excellent start to the year continuing
to benefit from the very favourable economic environment and record levels of
activity in the residential construction and repair and maintenance markets.
Like for like sales growth has been strong across the Chadwicks and Heiton
Buckley branch networks. Davies and Garvey's, which were acquired at the end of
2005, are performing ahead of pre-acquisition expectations.

DIY continues to be a strong growth segment of the Irish retail market. Although
the sector remains competitive, due to the recent significant increase in DIY
stores, the Group has continued to grow its DIY sales. The new Woodie's DIY
store in Castlebar has traded satisfactorily.

The UK Merchanting market continues to reflect the softer trading conditions
being experienced in the construction sector in the UK. It is anticipated that
first half sales in the UK will be up although, as previously indicated, like
for like sales will be below the levels achieved in the first half of 2005. The
improving macro economic data emerging in the UK should be positively reflected
in Group trading in the second half of the year. Developments since the start of
the year in the UK involved the completion of four bolt-on acquisitions trading
from six locations and the opening of six merchanting branches.

The Group continues to be confident about the prospects for its Irish and UK
businesses and is well placed to participate in the further consolidation of the
UK and Irish Merchanting markets.


Ends                                                                  8 May 2006

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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