Acquisition

Diploma PLC
03 August 2007



                                        12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
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   FOR IMMEDIATE RELEASE

   3 August 2007
                                        
                            DIPLOMA ACQUIRES CABLETEC
                             FOR A MAXIMUM OF £6.7m

   Diploma PLC, the international specialised distribution group, is pleased to
   announce the acquisition of Cabletec Interconnect Components Systems Limited
   ('Cabletec'), a leading supplier of wiring and connector products to the
   aerospace, defence and commercial electronics industries. Cabletec is based
   in Weston-super-Mare, near Bristol, where it operates from a two acre
   freehold site comprising 22,000 square feet of office, warehouse and
   manufacturing facilities. Cabletec employs 65 staff.

   Cabletec's traditional business is the distribution of a range of specialised
   wiring and harness components which are very similar to those supplied by the
   Group's existing subsidiary, IS-Rayfast. The customer base is made up of Tier
   2 and Tier 3 sub-contractors and repairers also serviced by IS-Rayfast. In
   addition, Cabletec supplies a range of manufactured products, including
   braids, connectors and multi-core cables which give greater access to the
   Tier 1 OEM's. Own manufactured earth bonding and shunt products are also
   supplied to the industrial and energy sectors.

   Prior to acquisition, Cabletec was owned by its management comprising Mr and
   Mrs A Auty, in their personal capacities and as trustees of the Auty Family
   Settlement, Mr J Moore and Mr M Bennett as trustee of the Auty Family
   Settlement. The existing Managing Director of Cabletec, Mr J Moore, and his
   management team will continue in their roles after acquisition and will
   report into the IS Group.

   Operating profit before tax for Cabletec in the year ended 31 December 2006
   was £0.6m on sales of £6.5m; gross assets at 31 December 2006 were £4.4m. At
   completion, net assets are expected to be approximately £2.3m, including net
   cash of approximately £0.4m.

   The initial cash consideration to be paid, which will be met from the Group's
   existing cash resources, is £6.2m, before acquisition costs, which includes
   the freehold property valued at a minimum of £1.0m. The consideration may be
   subject to a minor adjustment, based on the net assets at completion. Further
   deferred consideration up to a maximum of £0.5m will be payable, depending on
   the gross profit of Cabletec achieved in the twelve months following
   completion.

   Bruce Thompson, Chief Executive of Diploma PLC said:

   'The acquisition of Cabletec fits well with Diploma's strategy in its
   Controls Sector of increasing its presence in quality-sensitive market
   segments such as Aerospace, Defence, Rail and Power. The acquisition will
   broaden the product portfolio and add further depth to our operation by
   adding a company with proven added value and niche manufacturing skills.'
   For further enquiries please contact:


   Bruce Thompson, Chief Executive Officer   020 7549 5700
   Nigel Lingwood, Group Finance Director    020 7549 5705
   Ian Seaton, Bankside Consultants          020 7367 8891


   NOTE TO EDITORS:
   Diploma PLC is an international group of specialised distribution businesses
   operating in three sectors:

   Life Sciences - suppliers of consumables, instrumentation and related
   services to research, environmental and clinical diagnostic laboratories.
   Principal companies are Anachem, a1-envirosciences and CBISS in Europe and
   Somagen in Canada.

   Seals - Suppliers of hydraulic seals, gaskets, cylinders and attachment kits
   for heavy mobile machinery. Principal companies are Hercules Bulldog Sealing
   Products and HKX in North America and FPE in the UK.

   Controls - Suppliers of specialised wiring, connectors, control devices and
   fasteners for a range of technically demanding applications. Principal
   companies are the 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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