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

Jan 7, 2004

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: GRAINGER W W INC (GWW)
CIK: 0000277135
Period of Report: 2004-01-07

Reporting Person: SLAYTON JOHN W JR (Sr. VP, Merchandising)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2004-01-07	Common Stock	M	6960	$30.75	Acquired	58724	Direct
2004-01-07	Common Stock	F	5352	$47.36	Disposed	53372	Direct
2004-01-07	Common Stock	S	708	$46.99	Disposed	52664	Direct
2004-01-07	Common Stock	S	900	$46.95	Disposed	51764	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2004-01-07	Option	$30.75	M	6960	Disposed	2004-04-26	Common Stock (6960)	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option	$31.0625	2005-04-25	Common Stock (6880)	6880	Direct
Option	$33.75	2006-04-23	Common Stock (12340)	12340	Direct
Option	$37.25	2007-04-29	Common Stock (11460)	11460	Direct
Option	$51.6875	2008-04-28	Common Stock (9920)	9920	Direct
Option	$48.625	2009-04-27	Common Stock (12500)	12500	Direct
Option	$42.8125	2010-02-28	Common Stock (4140)	4140	Direct
Option	$43.50	2010-04-25	Common Stock (14390)	14390	Direct
Option	$43.50	2010-04-25	Common Stock (2160)	2160	Direct
Option	$37.50	2011-04-24	Common Stock (20000)	20000	Direct
Option	$37.50	2011-04-24	Common Stock (1440)	1440	Direct
Option	$54.61	2012-04-23	Common Stock (25000)	25000	Direct
Option	$45.50	2013-04-29	Common Stock (23000)	23000	Direct

Footnotes

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