Grainger Group President James T. Ryan Addresses Electrical Products Group

LONGBOAT KEY, Fla., May 18 /PRNewswire-FirstCall/ -- Grainger Group President James T. Ryan today addressed a group of 80 analysts attending the annual meeting of the Electrical Products Group of New York. Copies of his presentation can be found along with a webcast of his remarks on the Investor Relations section of Grainger's Web site, http://www.grainger.com/ .

Ryan described the trends in the facilities maintenance business as companies try to reduce the cost of procuring the tools, safety equipment, lighting and other products they use to keep their businesses running. He explained how Grainger's unique approach and scale advantages position it to capture market share in the fragmented, $100 billion U.S. MRO market.

Ryan highlighted how Grainger's market expansion program, award-winning Web site, and efficient nationwide logistics network are expected to contribute to the company's sales growth and improve operating earnings beyond 2005. The market expansion program reinforces Grainger's presence in the top 25 metropolitan markets and selected secondary markets to improve the company's customer coverage, product availability and service.

Ryan also indicated that the SAP integrated information system was now expected to go live in late January 2006. He explained that additional development and testing was expected to cost approximately $0.11 to $0.13 per share in 2005, and the company anticipates offsetting most of these additional costs. Ryan reiterated the company's 2005 earnings per share guidance of $3.20 to $3.45.

He also responded that in the Northeastern, mid-Atlantic and Midwestern parts of the United States the company has seen a slowing of sales growth in May. The company plans to report May sales results on June 13, 2005.

W.W. Grainger, Inc. , with 2004 sales of $5 billion, is the leading broad line supplier of facilities maintenance products serving businesses and institutions throughout North America. Through its network of nearly 600 branches, 17 distribution centers and multiple Web sites, Grainger helps customers save time and money by providing them with the right products to keep their facilities running.

This document contains forward-looking statements under the federal securities laws. The forward-looking statements relate to the company's expected future financial results and business plans, strategies, and objectives and are not historical facts. They are generally identified by qualifiers such as "trends," "expected," "soon-to-be-completed," "anticipates," "guidance," "plans," 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 and Exchange Commission, containing a discussion of the company's business and of various factors that may affect it.