Strategic Policy Statement

Graco suppliers are integral in achieving the Company's goal of being the highest quality, lowest cost, most responsive manufacturer. The Company will assure, through a formal process, that its suppliers are capable of supporting its requirements for rapid product design change, innovation, quality, business process development, value and lower inventories. We will provide an equal opportunity for suppliers worldwide, searching to qualify those that best enable us to meet our internal and external customers needs. The Company will deal with its suppliers fairly and cultivate an environment of mutual respect and trust. Graco will identify and qualify the smallest necessary number of suppliers with which to build long-term relationships for mutual benefit. We will optimize our supply base by rewarding those suppliers who pro-actively support our business through their technical innovations, responsiveness and cost competitiveness. The Company will strive to do business with suppliers worldwide, which conduct business legally and ethically, and respect the human dignity of their employees.