Holding in Company

Diploma PLC
12 October 2001



LETTER TO DIPLOMA PLC - DATED 11th OCTOBER 2001


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

(a)   Oryx International Growth Fund Limited ('ORYX'), PO Box 208, 
      Bermuda House, St Julian's Avenue, St Peter Port, Guernsey, C.I. 
      is a party to an agreement to which section 204 of the Act applies 
      (the 'Agreement'). The other party to this agreement is:-

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

      J 0 Hambro Capital Management Limited ('JOHCM'), Ground Floor, 
      Ryder Court, 14 Ryder Street, London SW1Y 6QB.

(b)   As at 11th October 2001, ORYX was interested for the purposes of the Act  
      in 300,000 ordinary shares in the relevant share capital, as defined in   
      section 198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which  
      represents 1.19% 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 ORYX 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 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 ORYX INTERNATIONAL GROWTH FUND LIMITED