Holding in Company

Diploma PLC
22 August 2000

LETTER TO:  DIPLOMA PLC

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 3,011,739 ord 5p shares of
the Company. This represents 11.96% of the issued share capital of the Company.

Below 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

From:  B Cassidy (Phillips & Drew)

Total Issued Share Capital     25,164,345


Name                                                       Quantity

Phildrew Nominees Limited           A/C LF09                79,106

Phildrew Nominees Limited           A/C LF20             2,932,633

                                                         3,011,739

                                                              11.96%