Acquisition

Diploma PLC
28 August 2007



                                         12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
                                                  TELEPHONE: [phone]
                                                  FACSIMILE: [phone]


   FOR IMMEDIATE RELEASE

                                                                 28 August 2007

                DIPLOMA ACQUIRES 75% of AMT VANTAGE HOLDINGS INC.
                        FOR A MAXIMUM OF £14.3m (C$30.0m)
                                        
   Diploma PLC, the international specialised distribution group, is pleased to
   announce the acquisition of 75% of AMT Vantage Holdings Inc. ('AMT'), a
   leading distributor of speciality electrosurgery and endoscopy equipment and
   related consumables to hospitals across Canada. AMT operates from a 10,000
   square foot leasehold facility based in Kitchener, Ontario which is one hour
   south west of Toronto. The Company employs 32 staff.

   AMT supplies specialised equipment and consumables to physicians in hospitals
   when carrying out electrosurgical procedures. Products include surgical smoke
   evacuation; conductivity pads; electrodes; generators and probes and flexible
   endoscopic accessories. It has also established an operation to serve the new
   growth market for vessel sealing products.

   A large proportion (ca. 80%) of AMT's revenues comes from multi-year customer
   contracts with hospitals and buying groups. Sales efforts are focused on
   nurse managers, physicians and surgeons. AMT has strong long term
   relationships with its principal suppliers.

   AMT has delivered strong growth in recent years by penetrating the market
   with several specialised products. These are mostly consumable products and
   are typically supplied under multi-year contracts with hospitals, which gives
   a predictable base-load of business for the future. There is considerable
   scope for further organic growth with these products by increasing market
   penetration in existing and new customers. In addition, AMT is broadening its
   product offering by signing up new suppliers and leveraging its position in
   electro-surgery by expanding into other surgical disciplines and new markets.
   Prior to acquisition by Diploma PLC, AMT was owned equally by its management
   comprising Bruce MacDonald, Bill Roberts and Dan Webb. The minority interest
   of 25% in AMT will be retained by these three individuals. Put and Call
   options exist over the minority shares which can be exercised after three and
   five years, based on an agreed multiple of earnings and subject to a maximum
   cap. Bruce MacDonald and Bill Roberts will remain with AMT as directors and
   will work closely with the management of Somagen, a fellow group company.
   Somagen supplies clinical diagnostic products to hospital laboratories in
   Canada.

   AMT's sales in the year ended 30 November 2006 were C$17.9m (£8.6m). Its
   profit before tax was C$0.8m (£0.4m) after shareholder bonuses which will not
   apply after acquisition. Gross assets at 30 November 2006 were C$5.0m
   (£2.4m). The financial statements of AMT for the year ended 30 November 2006
   were subject to a review engagement report in accordance with Canadian
   generally accepted standards for review engagements. A review engagement does
   not constitute an audit. At completion, net assets are expected to be
   approximately C$4.0m (£1.9m), including net cash of approximately C$1.0m
   (£0.5m).

   The initial cash consideration to be paid for 75% of the business, which will
   be met from the Group's existing cash resources, is C$27.5m (£13.1m), before
   acquisition costs. This may be subject to minor adjustment based on the net
   assets at completion. Further deferred consideration up to a maximum of
   C$2.5m (£1.2m) may be payable depending on the operating profit of AMT in the
   year ending 30 September 2008. The Board expects this acquisition to be
   earnings enhancing for the Group in the 2007/08 financial year.


   Bruce Thompson, Chief Executive of Diploma PLC said:

   'The acquisition of AMT fits with Diploma's strategy in its Life Sciences
   Canadian sector of increasing its presence in the health care market and will
   provide a solid impetus to further growth in this market.'


   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 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



                      This information is provided by RNS
            The company news service from the London Stock Exchange