Graco Acquires Sharpe Manufacturing Company

    MINNEAPOLIS--March 31, 2003--Graco Inc. announced today that it has purchased the assets of Sharpe Manufacturing Company of Santa Fe Springs, California. Sharpe manufactures and sells spray guns and related parts and accessories, and air supply accessories including hose, fittings, filters, dryers and regulators for the automotive refinish professional. The cash purchase price was not disclosed. Sharpe had 2002 sales of approximately $11.5 million.
    Graco's President and Chief Executive Officer David Roberts said, "We are excited about this opportunity to expand into a new market that leverages our skills in manufacturing, marketing and selling paint spraying equipment, and related accessories. Established in 1921, the Sharpe brand is highly recognized in the professional automotive refinishing industry. Sharpe has an experienced management team that will be staying with the business. We see a good fit between our two companies and are excited about the prospects for future revenue and earnings growth."

    Forward-Looking Statements

    A forward-looking statement is any statement made in this release and reports that the Company files periodically with the Securities and Exchange Commission, as well as in earnings 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 2002 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.