Holding in Company

Diploma PLC
7 December 2001



LETTER TO DIPLOMA PLC - DATED 6th DECEMBER 2001


Pursuant to Section 195 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 parties to this agreement are:-

     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 SWIY 6QB.

(b)  After a sale on 4 December 2001, ORYX was interested for the purposes of   
     the Act in 43,000 ordinary shares in the relevant share capital, as defined
     in section 198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which
     represents 0.17% of that Class of capital based on an issued share capital 
     of 25,164,000 ordinary shares.

(c)  472,000 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        190,000
     HSBC Global Custody London Limited        43,000
     Goldman Sachs International TNA           60,000
     Goldman Sachs International THO           25,000
     Goldman Sachs International THT           10,000
     Goldman Sachs International TEU          144,000

     Total                      472,000 shares = 1.88%

FROM MANAGEMENT INTERNATIONAL (GUERNSEY) LIMITED