GRACO INC — Director's Dealing 2007

Feb 23, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: GRACO INC (GGG)
CIK: 0000042888
Period of Report: 2007-02-21

Reporting Person: LOWE DAVID M (Vice President)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-02-21	Common Stock	M	50625	$6.15	Acquired	94173	Direct
2007-02-21	Common Stock	S	225	$41.87	Disposed	93948	Direct
2007-02-21	Common Stock	S	100	$41.85	Disposed	93848	Direct
2007-02-21	Common Stock	S	200	$41.83	Disposed	93648	Direct
2007-02-21	Common Stock	S	100	$41.82	Disposed	93548	Direct
2007-02-21	Common Stock	S	100	$41.81	Disposed	93448	Direct
2007-02-21	Common Stock	S	300	$41.8	Disposed	93148	Direct
2007-02-21	Common Stock	S	100	$41.79	Disposed	93048	Direct
2007-02-21	Common Stock	S	200	$41.77	Disposed	92848	Direct
2007-02-21	Common Stock	S	600	$41.76	Disposed	92248	Direct
2007-02-21	Common Stock	S	800	$41.75	Disposed	91448	Direct
2007-02-21	Common Stock	S	1000	$41.74	Disposed	90448	Direct
2007-02-21	Common Stock	S	400	$41.73	Disposed	90048	Direct
2007-02-21	Common Stock	S	200	$41.72	Disposed	89848	Direct
2007-02-21	Common Stock	S	400	$41.71	Disposed	89448	Direct
2007-02-21	Common Stock	S	1200	$41.7	Disposed	88248	Direct
2007-02-21	Common Stock	S	500	$41.69	Disposed	87748	Direct
2007-02-21	Common Stock	S	300	$41.68	Disposed	87448	Direct
2007-02-21	Common Stock	S	100	$41.67	Disposed	87348	Direct
2007-02-21	Common Stock	S	900	$41.66	Disposed	86448	Direct
2007-02-21	Common Stock	S	4800	$41.65	Disposed	81648	Direct
2007-02-21	Common Stock	S	1700	$41.64	Disposed	79948	Direct
2007-02-21	Common Stock	S	1300	$41.63	Disposed	78648	Direct
2007-02-21	Common Stock	S	1100	$41.62	Disposed	77548	Direct
2007-02-21	Common Stock	S	2800	$41.61	Disposed	74748	Direct
2007-02-21	Common Stock	S	2600	$41.6	Disposed	72148	Direct
2007-02-21	Common Stock	S	400	$41.59	Disposed	71748	Direct
2007-02-21	Common Stock	S	100	$41.57	Disposed	71648	Direct
2007-02-21	Common Stock	S	100	$41.52	Disposed	71548	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-02-21	Non-Qualified Stock Option (right to buy)	$6.15	M	50625	Disposed	2007-02-28	Common Stock (50625)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	357.5215	Indirect

Footnotes

F1: Employee stock option granted pursuant to the Graco Inc. Long-Term Stock Incentive Plan in a transaction exempt under Rule 16b-3. The stock option becomes exercisable in four equal annual installments, commencing two years after the date of the grant.