Holding in Company

Diploma PLC
24 April 2001


Letter to Diploma PLC

Pursuant to Section 198 of the Companies Act 1995 (the 'Act') we hereby notify
you that:

(a)  J O Hambro Capital Management Limited ('JOHCM'), Ground Floor, Ryder Court
     14 Ryder Street, London SW1Y 6QB is a party to an agreement to which
     section 204 of the Act applies (the 'Agreement'). The other party to this
     agreement is:-

     Oryx International Growth Fund Limited ('ORYX'), PO Box 208, Bermuda House,
     St Julian's Avenue, St Peter Port, Guernsey CI.

(b)  As at 24 April 2001, JOHCM was interested for the purposes of the Act in
     1,017,000 ordinary shares in the relevant share capital, as defined in
     section 198(2) of the Act, of Diploma PLC (the 'Relevant Shares'),  which
     represents 4.04% of that Class of capital based on an issued share
     capital of 25,164,000 ordinary shares.

(c)  1,317,000 of the Relevant Shares are shares in which JOHCM will be
     interested by virtue of sections 204 and 205 of the Act. This amounts to   
     5.23% of the ordinary shares in issue based on an issued share capital of
     25,164,000 shares.

(d) The Relevant Shares are held or will be held in the following registered
    names:

    HSBC Global Custody London Limited                      300,000
    Goldman Sachs International TNA                         260,000
    Goldman Sachs International THO                         117,000
    Goldman Sachs International TEU                         585,000
    Goldman Sachs International THT                          55,000

    Total                                  1,317,000 shares = 5.23%

Letter from J O Hambro Capital Management Limited