Holding in Company

Diagonal PLC
26 January 2001


                  DEALINGS BY SUBSTANTIAL SHAREHOLDERS

1)   NAME OF COMPANY

DIAGONAL PLC

2)   NAME OF SHAREHOLDER HAVING A MAJOR INTEREST

3I PLC

3)   Please state whether notification indicates that it is in respect of 
     holding of the Shareholder named in 2 above or in respect of a 
     non-beneficial interest or in the case of an individual holder if it is a
     holding of that person's spouse or children under the age of 18



4)   Name of the registered holder(s) and, if more than one holder, the 
     number of shares held by each of them.

RBSTB NOMINEES LIMITED A/C 3I PLC

5)   Number of shares/amount of stock acquired.

N/A

6)   ( N/A %) of issued Class

7)   Number of shares/amount of stock disposed

300,000

8)   (0.35%) of issued Class

9)   Class of security

ORDINARY SHARES OF 10 PENCE EACH

10)  Date of transaction


11)  Date company informed

25/01/01

12)  Total holding following this notification

5,925,356
               
              
13)  Total percentage holding of issued class following this notification

6.84%

14)  Any additional information

N/A

15)  Name of contact and telephone number for queries

STEVEN ANSTEE
020 7597 5166

IAN FARRELLY
01252 733 711

16)  Name and signature of authorised company official responsible for 
     making this notification

IAN FARRELLY

     Date of Notification .....26 JANUARY 2001.....