GRACO INC — Director's Dealing 2007

Feb 13, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: GRACO INC (GGG)
CIK: 0000042888
Period of Report: 2007-02-12

Reporting Person: Paulis Simon J (VICE PRESIDENT)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-02-12	Common Stock	M	6750	$17.97	Acquired	8456.476	Direct
2007-02-12	Common Stock	S	6750	$40.6379	Disposed	1706.476	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-02-12	Non-Qualified Stock Option (right to buy)	$17.97	M	6750	Disposed	2012-06-24	Common Stock (6750)	Direct

Footnotes

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