Holding in Company

Diploma PLC
1 June 2001

LETTER TO:  DIPLOMA PLC

Pursuant to Section 198 of the Companies Act 1985 ('the 'Act') we hereby notify 
you that:

(a) J 0 Hambro Capital Management Limited ('JOHCM'), Ground Floor, Ryder Court, 
    14 Ryder Street, London SWIY 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 June 2001, JOHCM was interested for the purposes of the Act in      
    1,197,000 ordinary shares in the relevant share capital, as defined in      
    section 198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which    
    represents 4.76% of that Class of capital based on an issued share capital  
    of 25,164,000 ordinary shares.

(c) l,467,000 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                   270,000
    Goldman Sachs International TNA                      210,000
    Goldman Sachs International THO                       90,000
    Goldman Sachs International TEU                      852,000
    Goldman Sachs International THT                       45,000

    Total                                 1,467,000 shares = 5.82%
    
From:  J O Hambro Capital Management Limited