U.S. Department of Justice News

Grainger Announces Resolution of Government Trade Agreements Act and Sourcing Case

CHICAGO, July 25 PRNewswire-FirstCall — Grainger (NYSE: GWW) today announced that it has agreed to a settlement of $6 million, or $0.05 a share, with the U.S. Department of Justice to resolve the Trade Agreements Act and Sourcing complaint, which had been unsealed in January 2008 in a federal court in Wisconsin. Demonstrating a commitment to cooperate fully with the Justice Department, Grainger resolved the complaint to avoid further costly legal fees. The company had previously taken a $0.05 per share reserve to fully fund the settlement.

"We value our reputation with our customers and are committed to operating with the highest level of integrity," said Grainger President and Chief Executive Officer James Ryan. "When the Justice Department indicated its willingness to discuss these matters, we responded quickly."

Ryan added, "The government is an important customer to Grainger, and we have always taken compliance seriously, which is why Grainger has continuously improved its compliance program from the beginning of the contract. Our compliance programs have grown stronger over the years and we believe that they represent the industry standard for excellence."

Discussions with the Department of Justice relating to its previously disclosed review of the company's compliance with disclosure obligations under the GSA contract and the contract's pricing provisions are ongoing. Grainger continues to believe that it has complied with the GSA contract in all material respects and will provide updates as warranted in its public filings.

W.W. Grainger, Inc. (NYSE: GWW), with 2007 sales of $6.4 billion, is the leading broad line supplier of facilities maintenance products serving businesses and institutions in the United States, Canada, Mexico and China. Through a highly integrated network including more than 600 branches, 18 distribution centers and multiple Web sites, Grainger's employees help customers get the job done.

Forward-Looking Statements

This document contains forward-looking statements under the federal securities law. The forward-looking statements relate to the company's expected future financial results and business plans, strategies and objectives are not historical facts. They are generally identified by qualifiers such as "anticipated," "expected," or "intend," "should" or similar expressions. There are risks and uncertainties the outcome of which could cause the company's results to differ materially from what is projected. The forward-looking statements should be read in conjunction with the company's most recent annual report, as well as the company's Form 10-K and other reports filed with the Securities & Exchange Commission, containing a discussion of the company's business and various factors that may affect it.

SOURCE W.W. Grainger, Inc.

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