Holding in Company

Diploma PLC
10 October 2001


LETTER TO: DIPLOMA PLC


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

(a) J O 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 parties to this         
    agreement are:-

    North Atlantic Smaller Companies Investment Trust PLC ('NASCIT') of Ground  
    Floor, Ryder Court, 14 Ryder Street, London SW1Y 6QB, and

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

(b) As at 10 October 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 198(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) 2,292,000 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:

Bank of New York Nominees Limited                      525,000
HSBC Global Custody London Limited                     300,000
Goldman Sachs International TNA                        277,000
Goldman Sachs International THO                        120,000
Goldman Sachs International THT                         56,000
Goldman Sachs International TEU                      1,014,000

Total                                 2,292,000 shares = 9.11%


LETTER FROM: J O HAMBRO CAPITAL MANAGEMENT LIMITED



LETTER TO: DIPLOMA PLC


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

(a) North Atlantic Smaller Companies Investment Trust PLC, 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 parties to this 
    agreement are:-

    J O Hambro Capital Management Limited ('JOHCM') of Ground Floor, Ryder      
    Court, 14 Ryder Street, London SW1Y 6QB, and

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

(e) As at 10 October 2001, NASCIT was interested for the purposes of the Act in 
    525,000 ordinary shares in the relevant share capital, as defined in        
    section 198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which    
    represents 2.09% of that Class of capital based on an issued share capital  
    of 25,164,000 ordinary shares.

(f) 2,292,000 of the Relevant Shares are shares in which NASCIT will be         
     interested by virtue of sections 204 and 205 of the Act.

(g) The Relevant Shares are held or will be held in the following registered    
    names:

Bank of New York Nominees Limited                      525,000
HSBC Global Custody London Limited                     300,000
Goldman Sachs International TNA                        277,000
Goldman Sachs International THO                        120,000
Goldman Sachs International THT                         56,000
Goldman Sachs International TEU                      1,014,000

Total                                 2,292,000 shares = 9.11%


LETTER FROM: NORTH ATLANTIC SMALLER COMPANIES INVESTMENT TRUST PLC