Holding in Company

Diploma PLC
1 May 2001



LETTER TO DIPLOMA PLC 

Pursuant to Section 198 of the Companies Act 1985 (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 1 May 2001, JOHCM was interested for the purposes of the Act in
     1,517,000 ordinary shares in the relevant share capital, as defined in
     section 198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which
     represents 6.03% of that Class of capital based on an issued share capital 
     of 25,164,000 ordinary shares.

(c)  1,817,000 of the Relevant Shares are shares in which JOHCM will be         
     interested by virtue of sections 204 and 205 of the Act.

(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                150,000
     Goldman Sachs International TEU              1,052,000
     Goldman Sachs International THT                 55,000
                    
                                   1,817,000 shares = 7.21%

FROM: FOR AND ON BEHALF OF J O HAMBRO CAPITAL MANAGEMENT LIMITED