Trading Statement

Diploma PLC
11 January 2006



     FOR IMMEDIATE RELEASE

                                                                11 January 2006

                                   DIPLOMA PLC

                                  TRADING UPDATE


     At the Annual General Meeting to be held today of Diploma PLC, the
     international specialised distribution group, the Chairman will report that
     the Group has begun the new financial year trading in line with
     expectations. The markets in North America remain positive and continue to
     show growth. Market conditions in the UK and Germany remain tough and
     competitive.

     The Directors remain confident that the Group's focus on improving
     operational performance, together with the strategy of investing for
     organic growth and pursuing acquisitions, will continue to deliver value
     for Diploma shareholders in 2006.

     The Group also announces that it has exchanged contracts to sell Phase 3 of
     the Stamford land for consideration of £11.1m, before taxation and expenses
     of sale. The consideration, which is subject to minor adjustments relating
     to certain contractual matters, will be payable on completion in early
     February 2006.



     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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