AGM Statement

Grafton Group PLC
09 May 2005


                               GRAFTON GROUP PLC
                             ANNUAL GENERAL MEETING
                            BURLINGTON HOTEL, DUBLIN
                               MONDAY, 9 MAY 2005

                  STATEMENT BY THE CHAIRMAN, MICHAEL CHADWICK

Grafton Group is pleased to confirm that trading in the first four months of the
year has been in line with expectations. The acquisition of Heiton Group plc was
successfully completed in January 2005 and it has since traded ahead of last
year's levels. Its phased integration is progressing according to plan.

The Group's Irish merchanting businesses continue to see high single digit like
for like growth in a buoyant and favourable trading environment. In an
increasingly competitive Irish DIY market, the Group's stores recorded sales in
line with the same period last year on a comparable bases.

Although consumer spending has shown signs of slowing in the UK retail sector,
the Group's UK merchanting operations have experienced modest single digit like
for like sales growth in the first four months of the year. Our UK Mortar
business recorded single digit sales growth in a maturing and more competitive
market.

Developments since the start of the year involved completion of five bolt on
acquisitions trading from five locations and the opening of six greenfield
branches, comprising five UK Plumbers Merchanting branches and a new DIY store
in Limerick, Ireland.

The Group remains confident of continued growth in profits and earnings per
share in 2005 and is well placed to participate in further consolidation of the
Irish and UK merchanting markets.

Ends                                                        9 May 2005

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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