Holding in Company

Diploma PLC
17 April 2001

TO:  COMPANY ANNOUNCEMENTS OFFICE

Below is a copy of a letter received today from Phillips & Drew Life Limited
notifying their interest in 7.60% of our issued share capital.

FROM:  A M R PARKINSON
       DIRECTOR
       DIPLOMA PLC


LETTER TO: DIPLOMA PLC - Dated 12 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 1,912,539 ord 5p shares of
the Company. This represents 7.60% of the issued share capital of the Company.

Below is a list of the Registered holders.

Phillips & Drew Life Limited is a 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

PHILDREW NOMINEES LIMITED            A/C LF09          79,106

PHILDREW NOMINEES LIMITED            A/C LF20       1,833,433

                                                   ----------
                                                    1,912,539
                                                   ----------
                                                         7.60%