W.W. Grainger (GWW)

Company Performance

The following stock price performance graph compares the cumulative total return on an investment in Grainger common stock with the cumulative total return of an investment in each of the S&P 500 Stock Index and the Dow Jones Wilshire 5000 Industrial Supplier Index. It covers the period commencing December 31, 2002, and ending December 31, 2007. The graph assumes that the value for the investment in Grainger common stock and in each index was $100 on December 31, 2002, and that all dividends were reinvested.

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Company Performance

The following stock price performance graph compares the cumulative total return on an investment in Grainger common stock with the cumulative total return of an investment in each of the S&P 500 Stock Index and the Dow Jones Wilshire 5000 Industrial Supplier Index. It covers the period commencing December 31, 2002, and ending December 31, 2007. The graph assumes that the value for the investment in Grainger common stock and in each index was $100 on December 31, 2002, and that all dividends were reinvested.

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Company Performance

The following stock price performance graph compares the cumulative total return on an investment in Grainger common stock with the cumulative total return of an investment in each of the S&P 500 Stock Index, a peer group index (the “Former Peer Group Index”) made up of all of the companies, other than Grainger, which constitute the Dow Jones Industrial Suppliers Index, and the Dow Jones Wilshire 5000 Industrial Supplier Index.

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When Grainger first began using the Former Peer Group Index in its stock performance graph, one of the principal constituent companies of the index was Hughes Supply, Inc. Hughes Supply, Inc. was acquired during 2006 and as a result is no longer publicly traded and no longer part of the index. Grainger believes that the Dow Jones Wilshire 5000 Industrial Supplier Index – which includes all of the current constituent companies in the Former Peer Group Index as well as a number of other businesses – now provides a more representative comparator group. The graph covers the period commencing December 31, 2001 and ending December 31, 2006. The graph assumes that the value for the investment in Grainger common stock and in each index was $100 on December 31, 2001 and that all dividends were reinvested.