Holding in Company

Diagonal PLC
20 February 2001

                  DEALINGS BY SUBSTANTIAL SHAREHOLDERS


1)   NAME OF COMPANY

DIAGONAL PLC

2)   NAME OF SHAREHOLDER HAVING A MAJOR INTEREST

MORLEY FUND MANAGEMENT LIMITED

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

MORLEY FUND MANAGEMENT LIMITED

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

BNY NORWICH UNION NOMINEES LTD  1,077,233
CHASE GA GROUP NOMINEES LTD     1,741,600
CHASE GA PENSION NOMINEES LTD     149,000
CUIM NOMINEE LIMITED              470,000

5)   Number of shares/amount of stock acquired.

NA

6)   ( N/A %) of issued Class

7)   Number of shares/amount of stock disposed

NA

8)   ( N/A %) of issued Class

9)   Class of security

ORDINARY SHARES OF 10p EACH

10)  Date of transaction



11)  Date company informed

16 FEBRUARY 2001

12)  Total holding following this notification

3,437,833
               
              
13)  Total percentage holding of issued class following this notification

3.97%

14)  Any additional information

NOVATION OF FUNDS FROM NORWICH UNION INVESTMENT MANAGEMENT LIMITED TO MORLEY
FUND MANAGEMENT LIMITED, BOTH WHOLLY OWNED SUBSIDIARIES OF CGNU PLC

15)  Name of contact and telephone number for queries

GILLIAN MAY-FISHER
TEL: [phone]

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

     Date of Notification 19 FEBRUARY 2001