GGG Graco Inc

Graco Inc. (NYSE:GGG) announced today that it has signed an agreement to purchase the assets of PBL Industries of Angola, Indiana. The transaction is expected to close before year-end and the cash purchase price was not disclosed. PBL manufactures and markets fuel transfer pumps, oil transfer pumps and related parts and accessories. The Company serves both OEM and retail customers and has sales of approximately $5 million. The business will be consolidated into Graco's Minneapolis-based Lubrication Equipment Division immediately after the transaction closes. Graco's President and Chief Executive Officer David Roberts said, "PBL is a nice addition to our Lubrication Equipment Division. It is a profitable and growing business that fits well with our core competencies." Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com. Cautionary Statement Regarding Forward-Looking Statements A forward-looking statement is any statement made in this report and any other reports that the Company files periodically with the Securities and Exchange Commission, as well as in press releases, analyst briefings, conference calls and the Company's Annual Report to shareholders which reflects the Company's current thinking on market trends and the Company's future financial performance at the time they are made. All forecasts and projections are forward-looking statements. The Company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 by making cautionary statements concerning any forward-looking statements made by or on behalf of the Company. The Company cannot give any assurance that the results forecasted in any forward-looking statement will actually be achieved. Future results could differ materially from those expressed, due to the impact of changes in various factors. These risk factors include, but are not limited to: economic conditions in the United States and other major world economies, currency fluctuations, political instability, changes in laws and regulations, and changes in product demand. Please refer to Exhibit 99 to the Company's Annual Report on Form 10-K for fiscal year 2004 for a more comprehensive discussion of these and other risk factors.