Holding in Company

Diploma PLC
10 April 2001



LETTER TO DIPLOMA PLC, DATED 9TH APRIL 2001.

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 2,487,939 ord 5p shares of
the Company.  This represents 9.88% of the issued share capital of the Company.

Please find below a list of 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  

              Total Issued Share Capital - 25,164,345      
                                                         
Name                                                         Quantity

PHILDREW NOMINEES LIMITED          A/C LFO9                    79,106
PHILDREW NOMINEES LIMITED          A/C LF20                 2,408,833
                                                            ---------
                                                            2,487,939
                                                            ---------
                                                                 9.88%

FROM PHILLIPS & DREW