Holding in Company

Diploma PLC
6 December 2001


To Diploma plc

                                                    5 December 2001

DIPLOMA PLC (THE 'COMPANY') - SEDOL 0182663

This notification supersedes our previous notification to you dated 2 November
2001 and is prompted by purchases totalling 220,000 on 4 December 2001 and a
change to the issued share capital.

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 2,848,797 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 2,848,797 shares giving the CGNU group a total percentage    
     interest in the shares of 12.58%.

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.


APPENDIX: MORLEY FUND MANAGEMENT LIMITED

REGISTERED HOLDERS                           NUMBER OF SHARES HELD

BNY Norwich Union Nominees Ltd               1,219,466  (Material)

Chase GA Group Nominees Ltd                    532,171  (Material)

CUIM Nominee Ltd                               686,512  (Material)

RBSTB Nominees Ltd                             100,000  (Material)

Vidacos Nominees Ltd                           310,648

TOTAL PERCENTAGE INTEREST OF MORLEY FUND MANAGEMENT LIMITED: 12.58%

ISSUED SHARE CAPITAL ON WHICH THIS NOTIFICATION IS BASED: 22,647,911


APPENDIX: CGNU PLC

REGISTERED HOLDERS                           NUMBER OF SHARES HELD

BNY Norwich Union Nominees Ltd               1,219,466  (Material)

Chase GA Group Nominees Ltd                    532,171  (Material)

CUIM Nominee Ltd                               686,512  (Material)

RBSTB Nominees Ltd                             100,000  (Material)

Vidacos Nominees Ltd                           310,648

TOTAL PERCENTAGE INTEREST OF CGNU PLC: 12.58%

ISSUED SHARE CAPITAL ON WHICH THIS NOTIFICATION IS BASED: 22,647,911