Acquisition

Diploma PLC
30 November 2005


                                                                        
                  
FOR IMMEDIATE RELEASE


                                                                30 November 2005


                             DIPLOMA ACQUIRES HKX, INC
                        FOR A MAXIMUM OF £7.0m (US$12.0m)


           EXPANSION OF SEALS ACTIVITIES INTO NEW MARKET IN NORTH AMERICA

              
Diploma PLC, the international specialised distribution group, is pleased to 
announce the acquisition of HKX, Incorporated ('HKX'), a leading provider of 
hydraulic system kits for the installation of attachments on excavators.  HKX is 
based in Monroe, Washington State, USA where it operates from an 18,000 square 
foot leasehold facility and employs 27 staff.

              
HKX offers customers a colour coded kit system that simplifies the installation 
process and substantially reduces the time to install attachments.  HKX's 
principal customers comprise some 200 dealers across the US.  The top 10 
customers together represent ca. 40% of total sales.

              
HKX's operating profit in the year ended 31 December 2004 was US$1.1m (£0.6m) on 
sales of US$6.0m (£3.5m). Net assets at 31 December 2004 were US$1.3m (£0.8m) 
and at completion are expected to be approximately US$2.0m (£1.2m), including              
net debt of approximately US$0.1m (£0.1m).

              
The initial cash consideration to be paid, which will be met from the Group's 
existing cash resources is US$10m (£5.8m) before acquisition costs.  This may be 
subject to a minor adjustment based on the net assets at completion.  Further              
deferred consideration up to a maximum of US$2m (£1.2m) will be payable 
depending on the gross profit of HKX in the years ending 31 December 2005 and 
2006.


              
Bruce Thompson, Chief Executive of Diploma PLC said:

'The acquisition of HKX represents a strategic expansion of the Group's Seal
business into a related market in North America. This is expected to open up 
further new opportunities for expansion, through exploiting cross-selling              
opportunities for growth by supplying a broader range of customers and 
applications and expanding into international markets.'




         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 Instrumentation, Consumables and related
Services to research, development and diagnostic laboratories. Principal 
companies are Anachem Group in the UK and Germany, and Somagen in Canada.
              
Seals- Next day delivery of hydraulic seal kits, gaskets and cylinder 
components, for the repair and maintenance of mobile machinery. Principal 
companies are Hercules Bulldog Sealing Products 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 and 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.
              
For the year ended 30 September 2005 the Group reported turnover of £111.3m
(2004: £100.5m) and profit before tax, exceptional items and goodwill 
amortisation of £16.6m (2004: £13.1m); adjusted earnings per share were 52.4p 
(2004: 41.2p) and dividends per share were 20.0p (2004: 17.0p).


             

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






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