Holding in Company

Diploma PLC
11 April 2001



LETTER TO DIPLOMA PLC
10 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 UBS Asset Management Limited and Phillips & Drew Life have an interest in
3,742,122 ord 5p shares of the Company. This represents 14.87% of the issued
share capital of the Company.

Below is a list of the Registered holders.

UBS Asset Management Limited and Phillips & Drew Life Limited are subsidiaries 
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 PHILLIPS & DREW 

              Total Issued Share Capital - 25,164,345

Name                                                  Quantity

CHASE NOMINEES LIMITED               A/C GMC3         326,419

CITY OF EDINBURGH COUNCIL            A/C LTH4          55,981

NORTHERN TRUST CO                    A/C NTH1          79,000

PHILDREW NOMINEES LIMITED            A/C BA            37,750

PHILDREW NOMINEES LIMITED            A/C CC            49,518

PHILDREW NOMINEES LIMITED            A/C EO            10,300

PHILDREW NOMINEES LIMITED            A/C FGC           36,402

PHILDREW NOMINEES LIMITED            A/C HFM           25,500

PHILDREW NOMINEES LIMITED            A/C LM            54,500

PHILDREW NOMINEES LIMITED            A/C LF09          79,106

PHILDREW NOMINEES LIMITED            A/C LF20       2,353,433

PHILDREW NOMINEES LIMITED            A/C NEE           64,213

PHILDREW NOMINEES LIMITED            A/C SR            18,000

PHILDREW NOMINEES LIMITED            A/C SRB            6,000

PHILDREW NOMINEES LIMITED            A/C TUE          407,500

PHILDREW NOMINEES LIMITED            A/C TW           138,500
                                                   ----------
                                                    3,742,122
                                                   ----------
                                                        14.87%