Holding in Company

Diploma PLC
21 July 2000


LETTER TO DIPLOMA PLC - DATED 20 JULY 2000

Re: S.198 Companies Act 1985: as amended by The Disclosure of Interest in Shares
(Amendment) Regulations 1993

In accordance with the Companies Act 1985, (as amended) I write to notify you
that Phillips & Drew Life Limited has an interest in 3,206,995 ord 5p shares of
the Company.  This represents 12.74% of the issued share capital of the Company.

Please find following a list of the Registered holders.

Phillips & Drew Life Limited is a subsidiary of UBS Asset Management Holding
(No.2) Limited which is also treated as having an interest in the above shares.
We are authorised to make this aggregate disclosure on behalf of UBS Asset
Management Holding (No.2) Limited the registered address of which is:

     Triton Court
     14 Finsbury Square
     London  EC2A 1PD


LETTER FROM B CASSIDY, LEGAL & COMPLIANCE DEPARTMENT
            PHILLIPS & DREW
            

                              Diploma PLC

              Total Issued Share Capital -      25,164,345

Name                                                   Quantity

PHILDREW NOMINEES LIMITED     A/C LF09                   82,062

PHILDREW NOMINEES LIMITED     A/C LF20                3,124,933

                                                      3,206,995

                                                         12.74%