Graco Acquires Bollhoff Verfahrenstechnik.

MINNEAPOLIS--(BUSINESS WIRE)--April 28, 1999--

Graco Inc. (NYSE: GGG) announced today that it has agreed to purchase the assets of Bollhoff Verfahrenstechnik ("BV"), located in Bielefeld, Germany. The purchase price was not disclosed. Graco will borrow under its existing lines of credit to fund the acquisition, which is expected to close on May 31, 1999. BV designs, manufactures and sells fluid application equipment throughout Europe, and had 1998 sales of approximately $20 million. Its principal products include piston pumps, diaphragm pumps, two-component proportioning equipment and applicators used in the automotive and industrial markets.

Graco's Vice Chairman George Aristides said, "We are excited about this opportunity to grow our sales in Europe and, in particular, the German market. BV is a well-respected Company with quality products and standards that are similar to Graco. We are pleased to welcome Bollhoff Verfahrenstechnik into the Graco family."

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 apply fluid materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries.