Holding in Company

Diploma PLC
11 July 2001


Letter to Diploma PLC

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

(a) J 0 Hambro Capital Management Limited ('JOHCM'), Ground Floor, Ryder Court, 
    14 Ryder Street, London SW1Y 6QB is a party to an agreement to which section
    204 of the Act applies (the 'Agreement'). The other party to this agreement 
    is:-

    Oryx International Growth Fund Limited ('ORYX'), PO Box 208, Bermuda House, 
    St Julian's Avenue, St Peter Port, Guernsey CI.

(b) As at 11 July 2001, JOHCM was interested for the purposes of the Act in 
    1,467,000 ordinary shares in the relevant share capital, as defined in      
    section l98(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which    
    represents 5.83% of that Class of capital based on an issued share capital  
    of 25,164,000 ordinary shares.

(c) 1,767,000 of the Relevant Shares are shares in which JOHCM 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 registered    
    names:

    HSBC Global Custody London Limited                300,000 
    Goldman Sachs International TNA                   277,000 
    Goldman Sachs International THO                   120,000 
    Goldman Sachs International TEU                 1,014,000
    Goldman Sachs International THT                    56,000
    
    Total                                           1,767,000 shares = 7.02%


Letter from J 0 Hambro Capital Management Limited