Equal Employment Opportunity/Affirmative Action Statement

Graco is committed to providing equal employment opportunity to all applicants and employees in accordance with all applicable equal opportunity and affirmative action laws, directives and regulations of Federal, State and Local governing bodies and agencies thereof, specifically including Chapter 139.50 and 141 of the Minneapolis Civil Rights Ordinance and the Rules and Regulations as applicable. In keeping with this commitment, Graco will recruit, hire, train and promote into all job levels the most qualified individuals without regard to race, color, creed, religion, sex, national orgin, ancestry, marital status, status with regard to public assistance, disability, age, sexual orientation or affectional preference, military status, or status as a special disabled or Vietnam era veteran except where sex is a bona fide occupational qualification. Graco will prohibit harassment against any applicant or employee who is a member of one of these groups.

Graco will base all of its employment decisions on job-related standards and its commitment to equal employment opportunity. Graco will ensure that all human resources matters such as compensation, benefits, transfers, layoffs, return from layoff, company-sponsored training, education, tuition assistance, and social and recreational programs are administered accordingly Graco will commit meaningful time and resources toward the achievement of its equal opportunity and affirmative action goals.

Graco will evaluate the performance of its management and supervisory personnel on the basis of their involvement in achieving Affirmative Action objectives as well as other established criteria. Any employee of this Company or subcontractors of this Company who does not comply with the equal employment opportunity policies and procedures set forth in this Statement and Plan will be subject to disciplinary action. Any subcontractor not complying with all applicable equal employment opportunity/affirmative action laws, directives and regulations of the Federal, State and Local governing bodies or agencies thereof, specifically including chapter 139.50 of the Minneapolis Civil Rights Ordinance, will be subject to appropriate legal sanctions.

Michael Galdonik, Director, Employee Relations, and EEO Coordinator, has been designated as Graco’s Equal Employment Opportunity (EEO) Coordinator. His responsibilities include designing and implementing an audit and reporting system to determine whether all employees in legally protected groups are given an equal opportunity to participate in company-sponsored activities. This system will monitor Graco’s affirmative action efforts, and report the effectiveness as required. The EEO Coordinator will report to the President & Chief Executive Officer, Patrick J. McHale on the effectiveness of Graco’s affirmative action program and any need for remedial action.

All applicants and employees who are special disabled or Vietnam era veterans or have a physical or mental disability and wish to benefit from Graco’s Affirmative Action Program are invited to identify themselves at this time or any time in the future. Such information shall be voluntarily provided to Graco and will be kept confidential.

Any applicant or employeee who feels he/she has been treated in any way that violates the equal employment opportunity principles should contact his/her immediate supervisor, their employee relations representative or the EEO Coordinator at 88 11th Avenue N.E., Minneapolis, MN 55413 (612) 623-6665. No adverse action will be taken against any applicant or employee for making a request to see Graco’s Affirmative Action Program or self-identifying their veteran or disability status. No individual will be subjected to harassment, intimidation, threats, coercion or discrimination for: filing a complaint; assisting or participating in an investigation, compliance review, hearing or other activity; opposing any unlawful act or practice; or exercising any other rights under any law or regulation requiring equal employment opportunity. Graco’s Affirmative Action Program may be inspected during normal business hours by contacting the EEO Coordinator.

		Feb. 1, 2008
Patrick J. McHale, President & Chief Executive Officer		Date