Holding in Company

Diploma PLC
27 September 2001



Letter dated 26 September 2001
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 SWIY 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 O Hambro Capital Management Limited ('JOHCM'), Ground Floor, Ryder Court, 14 
Ryder Street London SWIA 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 26 September 2001, NASCIT was interested for the purposes of the Act  
    in 450,000 ordinary shares in the relevant share capital, as defined in     
    section 198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which    
    represents 1.79% of that Class of capital based on an issued share capital  
    of 25,l64,000 ordinary shares.

(c) 2,217,000 of the Relevant Shares are shares in which NASCIT 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                         450,000 
HSBC Global Custody London Limited                        300,000 
Goldman Sachs International TNA                           277,000 
Goldman Sachs International THO                           120,000 
Goldman Sachs International THT                            56,000 
Goldman Sachs International TEU                         1,014,000

Total                                             2,217,000 shares = 8.81%

FROM:
J 0 Hambro Capital Management Limited as Company Secretary