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)    Oryx International Growth Fund Limited ('ORYX'), PO Box 208, Bermuda     
       House, St Julian's Avenue, St Peter Port, Guernsey, C.I. is a party to an
       agreement to which section 204 of the Act applies (the 'Agreement'). The 
       other party to this agreement is:-

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

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

(b)    As at 10th October 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)    2,292,000 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:
       
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 Management International (Guernsey) Limited
As Secretary