Grainger Settles Government Contract Dispute

                 Grainger Settles Government Contract Dispute

PR Newswire

CHICAGO, Dec. 26, 2012

CHICAGO, Dec. 26, 2012 /PRNewswire/ --Grainger (NYSE: GWW) today announced it
has settled its long-standing contract dispute with the federal government. As
announced October 16, the discrepancy centered on disclosure language in the
General Services Administration (GSA) and United States Postal Service (USPS)
contracts, which were implemented more than 10 years ago.

Grainger maintains it complied with the disclosure requirements and the
contracts in all material respects, and the settlement does not contain any
admission of wrongdoing by the company.

The GSA and USPS remain long-standing and important Grainger customers. These
contracts account for a portion of the company's overall government business,
which represented 17 percent of its total U.S. 2011 revenue.

As Grainger disclosed in October, it recorded a $70 million pre-tax reserve
for this settlement and established a separate pre-tax reserve to resolve tax,
freight and miscellaneous billing issues with these two government customers.


About Grainger
W.W. Grainger, Inc., with 2011 sales of $8.1 billion, is North America's
leading broad line supplier of maintenance, repair and operating products,
with expanding global operations. For more information about the company,
visit www.grainger.com/investor.

SOURCE W.W. Grainger, Inc.

Website: http://www.grainger.com
Contact: Joe Micucci, Director, Media Relations, +1-847-535-0879
 
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