Correction: Bond Issue

Grainger PLC
26 April 2007


In the announcement of the Company's proposed issue of convertible bonds issued
yesterday (RNS: 4734V) it referred to the acquisition of the Ability "Group".
This should have said Ability "portfolio".

The fully amended text of the announcement is given below.



25 April 2007
For immediate release



THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE
UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR TO U.S. PERSONS



GRAINGER PLC
Proposed issue of convertible bonds


Grainger PLC, the UK's largest quoted residential property owner, today
announces a proposed issue of convertible bonds due 2014.


The terms are expected to be fixed later today.  The indicative issue size is
£100 million, the indicative coupon is 3.625 - 4.125% and the indicative
conversion premium is 30 - 35% over the reference share price at the time of
pricing.


The bonds will be issued at par and (if not converted) redeemed at par on their
maturity date.  They will be callable at par after the fourth anniversary of
their issue if the prevailing share price is at least 130% of the conversion
price.  Application will be made to list the bonds on the Channel Islands Stock
Exchange.



Andrew Cunningham, Finance Director and Deputy Chief Executive, commented:



"Grainger has invested over £300 million in strategic acquisitions over the past
four months, notably The Capital Appreciation Trust, the CHARM portfolio which
it bought from The Church Commissioners, and the additional investment it made
into G:res1 on its acquisition of the Ability portfolio.



"We believe that these investments will significantly enhance the growth of our
business going forward.  This convertible bond will part-finance these
acquisitions and increase Grainger's headroom under its debt facilities."



JPMorgan Cazenove is acting as Grainger's Financial Adviser in connection with
this transaction.  The sole Bookrunner of the offering is J.P. Morgan Securities
Ltd.



A further announcement will be made in due course setting out the final terms of
these bonds, but no other details.



Enquiries:



Grainger plc:
Andrew Cunningham / Keith Sadler               0191 261 1819


JPMorgan Cazenove:
Francis Burkitt                                020 7155 4924


JPMorgan:
Monika Weiler                                  020 7325 1797


Financial Dynamics:
Stephanie Highett / Dido Laurimore             020 7831 3113



This announcement is for distribution only to persons who (i) have professional
experience in matters relating to investments; or (ii) are persons falling
within Article 49(2)(a) to (d) ("high net worth companies, unincorporated
associations etc") of The Financial Services and Markets Act 2000 ("FSMA")
(Financial Promotion) Order 2005; or (iii) are outside the UK (all such persons
together being referred to as "relevant persons").  In the UK, the promotion of
this offering is restricted by section 21 of FSMA. This announcement is directed
only at relevant persons and must not be acted on or relied on by persons who
are not relevant persons.  Any investment or investment activity to which this
announcement relates is available only to relevant persons and will be engaged
in only with relevant persons.



This announcement does not contain or constitute an offer of, or the
solicitation of an offer to buy or subscribe for, securities to any person in
Australia, Canada, Japan or the United States or in any jurisdiction to whom or
in which such offer or solicitation is unlawful. Neither the bonds nor the
underlying shares may be offered or sold in the United States or (in the case of
the bonds) to U.S. persons absent registration under the US Securities Act of
1933, as amended (the "Securities Act") or another exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act.
  Subject to certain exceptions, the bonds and the underlying shares may not be
offered or sold in Australia, Canada or Japan or to, or for the account or
benefit of, any national, resident or citizen of Australia, Canada or Japan.
The bonds and the underlying shares have not been and will not be registered
under the Securities Act or under the applicable securities laws of Australia,
Canada or Japan and the bonds are subject to U.S. tax law requirements.  There
will be no public offer of the securities in the United States.



There will be no public offer of the bonds in Jersey.  This communication does
not constitute an offer of bonds for subscription or sale in Jersey.  No offer
for subscription or sale of the bonds may be made in Jersey unless to a relevant
person and unless such offer does not constitute an offer to the public for the
purposes of the Control of Borrowing (Jersey) Order 1958, as amended.



Stabilisation / FSA






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