Holding in Company

Diploma PLC
27 September 2001

LETTER TO DIPLOMA PLC - DATED 26 SEPTEMBER 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, C.I 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 SWIY 6QB, and

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

(b)    As at 26th September 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)    2,217,000 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                     450,000 
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                                               2,217,000 shares = 8.81%

FROM: Oryx International Growth Fund Limited