Issue of Convertible Bonds

Grainger PLC
25 April 2007


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

Issue of convertible bonds


Further to its earlier announcement, Grainger PLC, the UK's largest quoted
residential property owner, now announces the terms of its issue of convertible
bonds.


The issue size is £112 million.  The coupon is 3.625%.  The conversion price is
864 pence, representing a conversion premium of 35% over the reference share
price at the time of pricing.  The maturity is 2014.


Enquiries:


Grainger plc:

Andrew Cunningham / Keith Sadler          0191 261 1819


JPMorgan Cazenove:

Francis Burkitt / Monika Weiler           020 7588 2828


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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