W.W. GRAINGER, INC. — Director's Dealing 2004

Jan 6, 2004

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: GRAINGER W W INC (GWW)
CIK: 0000277135
Period of Report: 2004-01-05

Reporting Person: CLARK WESLEY M (Pres & Chief Operating Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2004-01-05	Common Stock	M	6880	$31.0625	Acquired	131880	Direct
2004-01-05	Common Stock	F	5324	$47.36	Disposed	126556	Direct
2004-01-05	Common Stock	S	356	$47.37	Disposed	126200	Direct
2004-01-05	Common Stock	S	1200	$47.35	Disposed	125000	Direct
2004-01-05	Common Stock	S	7600	$47.26	Disposed	117400	Direct
2004-01-05	Common Stock	S	2900	$47.29	Disposed	114500	Direct
2004-01-05	Common Stock	S	1000	$47.30	Disposed	113500	Direct
2004-01-05	Common Stock	S	500	$47.33	Disposed	113000	Direct
2004-01-05	Common Stock	S	2900	$47.37	Disposed	110100	Direct
2004-01-05	Common Stock	S	12300	$47.38	Disposed	97800	Direct
2004-01-05	Common Stock	S	1100	$47.39	Disposed	96700	Direct
2004-01-05	Common Stock	S	5800	$47.40	Disposed	90900	Direct
2004-01-05	Common Stock	S	900	$47.41	Disposed	90000	Direct
2004-01-05	Common Stock	S	1000	$47.42	Disposed	89000	Direct
2004-01-05	Common Stock	S	1000	$47.43	Disposed	88000	Direct
2004-01-05	Common Stock	S	200	$47.47	Disposed	87800	Direct
2004-01-05	Common Stock	S	500	$47.50	Disposed	87300	Direct
2004-01-05	Common Stock	S	1500	$47.52	Disposed	85800	Direct
2004-01-05	Common Stock	S	1700	$47.53	Disposed	84100	Direct
2004-01-05	Common Stock	S	1000	$47.54	Disposed	83100	Direct
2004-01-05	Common Stock	S	600	$47.55	Disposed	82500	Direct
2004-01-05	Common Stock	S	1000	$47.57	Disposed	81500	Direct
2004-01-05	Common Stock	S	5400	$47.59	Disposed	76100	Direct
2004-01-05	Common Stock	S	6000	$47.60	Disposed	70100	Direct
2004-01-05	Common Stock	S	100	$47.61	Disposed	70000	Direct
2004-01-05	Common Stock	S	500	$47.62	Disposed	69500	Direct
2004-01-05	Common Stock	S	100	$47.63	Disposed	69400	Direct
2004-01-05	Common Stock	S	400	$47.65	Disposed	69000	Direct
2004-01-05	Common Stock	S	800	$47.68	Disposed	68200	Direct
2004-01-05	Common Stock	S	200	$47.69	Disposed	68000	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2004-01-05	Option	$31.0625	M	6880	Disposed	2005-04-25	Common Stock (6880)	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option	$33.75	2006-04-23	Common Stock (12340)	12340	Direct
Option	$37.25	2007-04-29	Common Stock (15900)	15900	Direct
Option	$51.6875	2008-04-28	Common Stock (17540)	17540	Direct
Option	$48.625	2009-04-27	Common Stock (33710)	33710	Direct
Option	$42.8125	2010-02-28	Common Stock (9540)	9540	Direct
Option	$43.50	2010-04-25	Common Stock (38830)	38830	Direct
Option	$43.50	2010-04-25	Common Stock (5830)	5830	Direct
Option	$37.50	2011-04-24	Common Stock (75000)	75000	Direct
Option	$37.50	2011-04-24	Common Stock (3890)	3890	Direct
Option	$54.61	2012-04-23	Common Stock (80000)	80000	Direct
Option	$45.50	2013-04-29	Common Stock (80000)	80000	Direct

Footnotes

F1: Exercisable in four equal annual installments beginning 4/26/2001.