Holding in Company

Diploma PLC
20 February 2001


Letter to Diploma plc
Dated 16 February 2001

DIPLOMA ORD GBP 0.05

This notification relates to DIPLOMA ORD GBP 0.05 in the capital of the Company
(the 'shares') and is given in fulfilment of the obligations imposed by sections
198 to 202 of the Companies Act 1985 (the 'Act').

This notification arises from the novation of funds from Norwich Union
Investment Management Limited to Morley Fund Management Limited, both wholly
owned subsidiaries of CGNU plc.

1.     Notification on behalf of Norwich Union Investment Management Limited (a
       subsidiary of CGNU plc).

1.1    Norwich Union Investment Management Limited no longer have a notifiable 
       interest in the shares.

2.     Notification on behalf of Morley Fund Management Limited (a subsidiary 
       of CGNU plc.)

2.1    We hereby notify you on behalf of Morley Fund Management Limited that
       immediately after the time when the obligation to make this notification
       arose Morley Fund Management Limited were interested in 1,543,641 shares.

2.2    The identity of the registered holders of the shares to which this
       notification relates and the number of shares held by each of them are   
       set out in the Appendix below.

We are only required to notify interests which are defined as material interests
when the holding is equal to 3% or more of the Company's relevant share capital.
The term material interests exclude certain categories where we do not hold a
beneficial interest, for example where the shares are held in an Authorised Unit
Trust Scheme or Open Ended Investment Company.  Holdings in those categories are
therefore not included in the holding notified under this letter.  If you wish
us to confirm the level of holdings in these categories, please let us know.

Letter from CGNU plc


APPENDIX:  MORLEY FUND MANAGEMENT LIMITED

REGISTERED HOLDERS                          NUMBER OF SHARES HELD

BNY NORWICH UNION NOMINEES LTD                  1,325,430
CHASE GA GROUP NOMINEES LTD                       218,211

TOTAL PERCENTAGE INTEREST OF MORLEY FUND MANAGEMENT LIMITED:  6.13%

ISSUED SHARE CAPITAL ON WHICH THIS NOTIFICATION IS BASED:  25,164,345