Holding in Company

Diploma PLC
8 February 2001


LETTER TO:   DIPLOMA PLC

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 2,755,339 ord 5p shares
of the Company. This represents 10.94% of the issued share capital of the
Company.

Below is a list of the 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) the registered address of which is:

                   Triton Court
                   14 Finsbury Square
                   London EC2A 1PD

LETTER FROM PHILLIPS & DREW FUND MANAGEMENT LIMITED

              Total Issued Share Capital - 25,164,345

Name                                                  Quantity
PHILDREW NOMINEES LIMITED            A/C LF09           79,106
PHILDREW NOMINEES LIMITED            A/C LF20        2,676,233
                                                     ---------
                                                     2,755,339
                                                     ---------
                                                         10.94%