Holding in Company

Diploma PLC
11 October 2001



LETTER TO DIPLOMA PLC 

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

(a) North Atlantic Smaller Companies Investment Trust PLC, Ground Floor, Ryder  
    Court, 14 Ryder Street, London SW1Y 6QB ('NASCIT') is a party to an         
    agreement to which section 204 of the Act applies (the 'Agreement'). The    
    other parties to this agreement are:-

    J 0 Hambro Capital Management Limited ('JOHCM'), Ground Floor, Ryder Court, 
    14 Ryder Street, London SW1A 6QB, and

    Oryx International Growth Fund Limited ('ORYX'), PO Box 208, Bermuda House, 
    St Julian's Avenue, St Peter Port, Guernsey CI.

(c) As at 11 October 2001, NASCIT was interested for the purposes of the Act in 
    1,275,000 ordinary shares in the relevant share capital, as defined in      
    section 198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which    
    represents 5.06% of that Class of capital based on an issued share capital  
    of 25,164,000 ordinary shares.

(f) 3,242,000 of the Relevant Shares are shares in which NASCIT will be         
    interested by virtue of sections 204 and 205 of the Act.

(g) The Relevant Shares are held or will be held in the following registered    
    names:

    Bank of New York Nominees Limited                 1,278,000 
    HSBC Global Custody London Limited                  300,000 
    Goldman Sachs International TNA                     325,000 
    Goldman Sachs International THO                     140,000 
    Goldman Sachs International THT                      64,000 
    Goldman Sachs International TEU                   1,135,000

     Total                                            3,242,000 shares = 12.88%

FROM For and on behalf of J 0 Hambro Capital Management Limited as Company      
     Secretary

 

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 SW1Y 6QB is a party to an agreement to which section
    204 of the Act applies (the 'Agreement'). The other parties to this         
    agreement are:-

    North Atlantic Smaller Companies Investment Trust PLC ('NASCIT') of Ground  
     Floor, Ryder Court, 14 Ryder Street, London SW1Y 6QB, and

    Oryx International Growth Fund Limited ('ORYX'), PO Box 208, Bermuda House, 
    St Julian's Avenue, St Peter Port, Guernsey CI.

(b) As at 11 October 2001, JOHCM was interested for the purposes of the Act in  
    1,667,000 ordinary shares in the relevant share capital, as defined in      
    section 198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which    
    represents 6.62% of that Class of capital based on an issued share capital  
    of 25,164,000 ordinary shares.

(c) 3,242,000 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:
 
    Bank of New York Nominees Limited                 1,278,000 
    HSBC Global Custody London Limited                  300,000 
    Goldman Sachs International TNA                     325,000 
    Goldman Sachs International THO                     140,000 
    Goldman Sachs International THT                      64,000 
    Goldman Sachs International TEU                   1,135,000

     Total                                            3,242,000 shares = 12.88%



FROM For and on behalf of J 0 Hambro Capital Management Limited