Holding in Company

Diploma PLC
13 July 2001

Letter to Diploma PLC
Letter dated 11 July 2001

Pursuant to Section 198 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 CI is a party to an agreement
to which section 204 of the Act applies (the 'Agreement'). The other party to
this agreement is:-

J 0 Hambro Capital Management Limited ('JOHCM'), Ground Floor, Ryder Court, 14
Ryder Street, London SWIA 6QB.

(b)    As at 11th July 2001, ORYX was interested for the purposes of the Act in
300,000 ordinary shares in the relevant share capital, as defined in section
198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which represents
1.19% 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 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:

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 Oryx International Growth Fund Limited