Dividends/Share Purchase Payments

Grafton Unit

When an investor acquires a Grafton Unit it comprises one Grafton Group plc ordinary share, one Grafton Group (UK) plc 'C' ordinary share and seventeen Grafton Group plc 'A' ordinary shares.

Dividends

An interim dividend of 2.5 cent per Grafton Unit will be paid in respect of Grafton Units on 31 March 2010. The relevant record date for this payment is 12 March 2010. The payment will be made in euro but shareholders can elect to receive the payment in sterling. Dividend Withholding Tax ('DWT') applies to dividends paid by way of cash and is deducted at the standard rate of income tax on the gross payment with a credit for DWT. Overseas shareholders should be subject to the tax treatment applicable under the tax legislation in their jurisdiction. Institutional investors who are fully exempt from tax should have no tax liability on the payment.

Share Purchase Payments

The Group has in the past, in accordance with shareholder approval, used part of its distributable reserves to purchase 'A' ordinary shares for cash, from shareholders on the register at a given record date. Up to 4 February 2010, the payment to Irish shareholders should generally have been treated as a capital transaction and should therefore have been subject to the Irish capital gains tax at the rate prevailing at the time of the purchase of 'A' ordinary shares. Purchases of 'A' ordinary shares after 4 February 2010 are generally treated as a distribution and subject to DWT, and Irish shareholders are taxed at the marginal rate of income tax on the gross payment with a credit for DWT. Overseas shareholders should be subject to the tax treatment applicable under the tax legislation in their jurisdiction. Institutional investors who are fully exempt from tax should have no tax liability on the payment.

The above is for general information purposes only and is based on Grafton Group plc's understanding of the position as at 8th March 2010. Shareholders should take their own professional advice on all matters relating to an investment in Grafton Group plc.