Holding in Company

Diploma PLC
17 October 2001



LETTER TO:  DIPLOMA PLC
DATED:  16 OCTOBER 2001


DIPLOMA PLC (THE 'COMPANY') - SEDOL 0182663

This notification supersedes our previous notification to you dated 30 May 2001 
and is prompted by purchases totalling 85,000 on 15 October 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 2,088,797 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 Appendix below: 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 
2,088,797 shares giving the CGNU group a total percentage interest in the shares
of 8.30%.

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 Appendix below: CGNU plc.

If you require further information as to which companies in the CGNU group hold 
interests in the shares (by virtue of s.203 of the Act) please submit a written 
request and we will be happy to supply this information.

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. If you wish us
to confirm the level of holdings in these categories, please let us know.


LETTER FROM:
Margaret Watts 
for and on behalf of CGNU plc
        
 
APPENDIX:   MORLEY FUND MANAGEMENT LIMITED 

REGISTERED HOLDERS                                    NUMBER OF SHARES HELD

BNY Norwich Union Nominees Ltd                            1,362,096 (Material) 
Chase GA Group Nominees Ltd                                 268,021 (Material) 
CUIM Nominee Ltd                                            358,680 (Material) 
RBSTB Nominees Ltd                                          100,000 (Material)

TOTAL PERCENTAGE INTEREST OF MORLEY FUND MANAGEMENT LIMITED: 8.30% 

ISSUED SHARE CAPITAL ON WHICH THIS NOTIFICATION IS BASED: 25,164,345