Holding in Company

Diploma PLC
8 October 2001



LETTER TO DIPLOMA PLC
DATED 5 OCTOBER 2001

Companies Act 1985 - Disclosure of Interest in shares


Consequent upon a sale in the market of 200,000 shares on the 04 October 2001, 
we now hold the following number of shares which are not subject to a concert 
party and will be registered as follows:
       

Material Interest

HSBC Global Custody Nominee (UK) Ltd A/c 775245               100,000
HSBC Global Custody Nominee (UK) Ltd A/c 754612               101,000
HSBC Global Custody Nominee (UK) Ltd A/c 766793                 7,000
HSBC Global Custody Nominee (UK) Ltd A/c 360509                14,277
HSBC Global Custody Nominee (UK) Ltd A/c 357206               711,880
HSBC Global Custody Nominee (UK) Ltd A/c 747381                25,000
HSBC Global Custody Nominee (UK) Ltd A/c 866203                19,500
                                                              978,657    3.88%

Please note that this percentage is based on our understanding that your issued 
share capital is 25,200,000.


LETTER FROM LEGAL & GENERAL INVESTMENT MANAGEMENT