Holding in Company

Diploma PLC
30 May 2001


Letter to Diploma plc


DIPLOMA PLC (THE 'COMPANY') - SEDOL 0182663

This notification supersedes our previous notification to you dated 16 February
2001.

This notification relates to issued ordinary shares of GBP0.05 each in the
capital of the Company (the 'shares') and is given in fulfilment of the
obligations imposed by sections 198 to 202 of the Companies Act 1985 (the
'Act').

1.     Notification on behalf of Morley Fund Management Limited (a subsidiary of

CGNU plc).

1.1    We hereby notify you on behalf of Morley Fund Management Limited that
immediately after the time when the obligation to make this notification arose
Morley Fund Management Limited were interested in 1,821,641 shares.

1.2    The identity of the registered holders of the shares to which this
notification relates and the number of shares held by each of them are set out
in the attached Appendix: Morley Fund Management Limited.

2.     Notification on behalf of CGNU plc

2.1    We hereby notify you on behalf of CGNU plc that immediately after the
time when the obligation to make this notification arose CGNU plc were
interested in 1,821,641 shares giving the CGNU group a total percentage interest
in the shares of 7.24%.

2.2    The identity of the registered holders of the shares to which this
notification relates and the number of shares held by each of them are set out
in the attached Appendix: CGNU plc.

We are only required to notify interests which are defined as material interests
when the holding is equal to 3% or more of the Company's relevant share capital.
The term material interests exclude certain categories where we do not hold a
beneficial interest, for example where the shares are held in an Authorised Unit
Trust Scheme or Open Ended Investment Company.  Holdings in those categories are
therefore not included in the holding notified under this letter.

Letter from CGNU plc

APPENDIX:  MORLEY FUND MANAGEMENT LIMITED

REGISTERED HOLDERS                                    NUMBER OF SHARES HELD

BNY Norwich Union Nominees Ltd                        1,325,430    (Material)
Chase GA Group Nominees Ltd                             254,211    (Material)
CUIM Nominee Ltd                                        142,000    (Material)
RBSTB Nominees Ltd                                      100,000    (Material)

TOTAL PERCENTAGE INTEREST OF MORLEY FUND MANAGEMENT LIMITED:  7.24%
ISSUED SHARE CAPITAL ON WHICH THIS NOTIFICATION IS BASED:  25,164,345



APPENDIX:  CGNU PLC

REGISTERED HOLDERS                                    NUMBER OF SHARES HELD

BNY Norwich Union Nominees Ltd                        1,325,430    (Material)
Chase GA Group Nominees Ltd                             254,211    (Material)
CUIM Nominee Ltd                                        142,000    (Material)
RBSTB Nominees Ltd                                      100,000    (Material)

TOTAL PERCENTAGE INTEREST OF CGNU PLC:  7.24%
ISSUED SHARE CAPITAL ON WHICH THIS NOTIFICATION IS BASED:  25,164,345