Holding in Company

Diploma PLC
5 November 2001

Letter to Diploma plc
Dated 2 November 2001

DIPLOMA PLC (THE 'COMPANY') - SEDOL 0182663
 
This notification supersedes our previous notification to you dated 16
October 2001 and is prompted by purchases totalling 25,000 on 1 November
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 2,529,445 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 2,529,445 shares giving the CGNU group a total percentage
     interest in the shares of 10.05%.

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.

Letter from: CGNU plc

 
APPENDIX: MORLEY FUND MANAGEMENT LIMITED

REGISTERED HOLDERS                              NUMBER OF SHARES HELD
 
BNY Norwich Union Nominees Ltd                   1,175,676 (Material)

Chase GA Group Nominees Ltd                        290,096 (Material)

CUIM Nominee Ltd                                   653,025 (Material)

RBSTB Nominees Ltd                                 100,000 (Material)

Vidacos Nominees Ltd                               310,648

TOTAL PERCENTAGE INTEREST OF MORLEY FUND MANAGEMENT LIMITED: 10,05%

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