Acquisition

Diploma PLC
10 October 2006



   FOR IMMEDIATE RELEASE

                                                                10 October 2006

                         DIPLOMA ACQUIRES CBISS LIMITED
                             FOR A MAXIMUM OF £6.0m
                                        
   Diploma PLC, the international specialised distribution group, is pleased to
   announce the acquisition of CBISS Limited ('CBISS'), a leading supplier of
   equipment and services for environmental monitoring and control. CBISS is
   headquartered in Tranmere, near Liverpool, where it operates from a 7,500
   square foot leasehold facility and employs 54 staff. It also has two small
   satellite locations in Stockport and Farnham. Prior to acquisition, CBISS
   Limited was owned by its management, comprising Mr and Mrs P McQue and Messrs
   K Roberts and S Duggan.

   CBISS is the leading supplier of bespoke Continuous Emission Monitoring
   Systems (CEMS) to waste incineration plants in the UK and is extending into
   Power, Chemicals and other industries. It also supplies systems for gas leak
   detection and process and toxic gas monitoring. Systems are supported by
   CBISS under comprehensive service contracts, providing repair, calibration
   and maintenance services and 24 hour, seven days a week, remote diagnostics
   service. Analyser hire is also available through EIM (Northern) Limited, a
   subsidiary of CBISS.

   Operating profit before tax for the CBISS group (including EIM (Northern)
   Limited) in the year ended 31 July 2006 was £1.2m on sales of £6.2m.
   Consolidated gross assets at 31 July 2006 were £4.0m, including net cash of
   approximately £0.9m.

   The initial cash consideration to be paid, which will be met from the Group's
   existing cash resources, is £5.25m, before acquisition costs. This may be
   subject to an adjustment up to a maximum of £0.25m, based on the net assets
   at completion. Further deferred consideration up to a maximum of £0.5m will
   be payable, depending on the operating profits of CBISS in each of the years
   ending 30 September 2007 and 2008.

   Bruce Thompson, Chief Executive of Diploma PLC said:
   'The acquisition of CBISS fits with Diploma's strategy in its Life Sciences
   sector of increasing its presence in the Industrial and Environmental market.
   This acquisition will add scale and critical mass to a1-envirosciences'
   operations in the UK and offer opportunities for growth, both in the UK and
   more broadly in Europe.'

   For further enquiries please contact:

   Bruce Thompson, Chief Executive Officer       020 7638 0934
   Nigel Lingwood, Group Finance Director        020 7448 4875
   Ian Seaton, Bankside Consultants              020 7367 8891





NOTE TO EDITORS:


Diploma PLC is a specialised international distribution group operating in three
sectors:

Life Sciences - Distributors of consumables, instrumentation and related
services to research, development and diagnostic laboratories. Principal
companies are Anachem Group and a1-envirosciences in Europe, and Somagen in
Canada.

Seals - Next day delivery of hydraulic seal kits, gaskets and cylinders, for
mobile machinery. Principal companies are Hercules Bulldog Sealing Products and
HKX in North America and FPE in the UK.

Controls - Distributors of specialised wiring, connectors and control devices
for a range of technically demanding applications. Principal companies are IS
Group in the UK and US, Sommer & Filcon in Germany and Hawco in the UK.

Within each of these sectors, the Diploma businesses serve industry segments
with long term growth potential and with the opportunity for sustainable
superior margins through the quality of customer service, depth of technical
support and value adding activities.



Further information on Diploma PLC can be found at www.diplomaplc.com




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