GGG Graco Inc

The Board of Directors of Graco Inc. (NYSE:GGG) today announced the following actions related to its common stock of which there are approximately 68.4 million shares outstanding: -- Authorization of a plan for the Company to purchase up to a total of 7 million shares of its outstanding common stock from now through February 29, 2008. These shares will be acquired primarily through open-market purchases and accelerated share repurchase transactions from time to time. -- The declaration of a regular quarterly dividend of $0.145 per common share payable on May 3, 2006, to shareholders of record at the close of business on April 17, 2006. "These actions reflect Graco's strong historical financial performance as well as our outlook for future profitable growth," said President and Chief Executive Officer David Roberts. Cautionary Statement Regarding Forward-Looking Statements A forward-looking statement is any statement made in this earnings release and 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. Investors should realize that factors other than those identified above and in Exhibit 99 might prove important to the Company's future results. It is not possible for management to identify each and every factor that may have an impact on the Company's operations in the future as new factors can develop from time to time. 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.