Trading Statement

Diploma PLC
10 January 2007



    FOR IMMEDIATE RELEASE

                                                               10 January 2007


                                   DIPLOMA PLC
                                  TRADING UPDATE


    At the Annual General Meeting to be held today of Diploma PLC, the Chairman
    will report that the Group has made a good start to the new financial year
    and is trading ahead of the comparable period last year. This is despite the
    adverse impact on the Group's operating profits from the weakness in the US$
    and CAN$, relative to Sterling.

    The Life Sciences businesses are showing continued growth both in Europe and
    in Canada. The Seals businesses are predominantly driven by the North
    American industrial economies and in particular heavy construction, where
    growth is continuing but at modest rates. The European Defence, Aerospace
    and Motorsport markets, in which the Group's Controls businesses operate,
    continue to be buoyant.

    The Directors remain confident that the strategy of investing for organic
    growth and in high quality acquisitions will continue to deliver good value
    to shareholders.


    For further enquiries please contact:

    Bruce Thompson, Chief Executive Officer     020 7638 0934
    Nigel Lingwood, Group Finance Director      020 7448 4875
    Ian Seaton, Bankside Consultants            020 7367 8891





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