Holding in Company

Diploma PLC
7 December 2001



Letter to Diploma PLC

Companies Act 1985 (as amended):
Disclosure of Interests in Shares

In accordance with Part VI of the Companies Act 1985 (as amended) (the 'Act'), 
we write to inform you that Prudential plc and certain of its subsidiary 
companies have a notifiable interest in the issued share capital of your company
as detailed in the schedule below.

For the purposes of S210 of the Act, the address for those companies identified 
in the schedule below is Laurence Pountney Hill London EC4R 0HH.

From M&G Investment Management Limited.


               Notifiable Position Report for DIPLOMA ORD GBP0.05
                              as at 06 December 2001

Percentage holdings are calculated using an issued share capital of 22,647,911 
ORD GBP0.05 shares

                 Registered Holder        Holding       %

Prudential plc                         1,275,000     5.62       Total Notifiable
                                                                  Interest
                PRUCLT HSBC GIS
                NOM(UK) PAC AC         1,275,000

The Prudential                         1,275,000     5.62
 Assurance 
 Company 
 Limited
                PRUCLT HSBC GIS
                NOM(UK) PAC AC         1,275,000