Interim Management Statement

Diploma PLC
17 January 2008



                                         12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
                                                  TELEPHONE: [phone]
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   FOR IMMEDIATE RELEASE

                                                                 17 January 2008


                                  DIPLOMA PLC
                          INTERIM MANAGEMENT STATEMENT

   Diploma PLC, the international group of specialised distribution businesses
   is today issuing its first Interim Management Statement in accordance with
   the Disclosure and Transparency Rules, issued by the UK Listing Authority, in
   advance of the Company's AGM to be held today at 12.00 midday. This Statement
   relates to the period from 1 October 2007 to 31 December 2007 and includes
   the first quarter's trading.

   The Board is pleased to report that trading in the first quarter has
   continued to be positive in each of the Group's core business sectors. The
   contributions from the three acquisitions completed in August last year have
   been in line with our expectations and as a result, revenue has increased by
   over 20% on the comparable period last year.

   In Life Sciences, the businesses in Europe and Canada have shown steady
   progress, with the newly acquired AMT business in Canada making a substantial
   contribution to sales and operating profit.

   Sales in the Seals businesses have increased on the comparable period last
   year, despite the uncertain economic background in North America. There have
   been strong export led performances from the US and UK businesses and the M
   Seals business in Denmark has made a good contribution in its first full
   quarter in the Group.

   The Controls businesses, largely based in Europe, continue to benefit from
   the specific characteristics of the specialised markets in which they
   operate. In the UK, sales have increased strongly, reflecting both underlying
   growth and a good contribution from the newly acquired Cabletec business. In
   Germany, sales activity remains solid against a strong 2006 comparative when
   Filcon's connector deliveries peaked on certain major projects.

   The volatility in the foreign exchange markets continues to impact the Group
   on translation of the results of the overseas businesses to UK sterling.
   During the first quarter of the financial year the US$ was 5% weaker,
   relative to UK sterling, than the comparable period last year. Offsetting
   this, the C$ and the Euro were 10% and 6% stronger, respectively and
   therefore the net impact on sales and operating profit from these changes in
   exchange rates was not significant.

   The Group's financial position continues to be strong with net cash of £11.0m
   at 31 December 2007 and undrawn committed term facilities of £20.0m. Pursuant
   to the Sale and Purchase Agreement for the acquisition of Somagen Diagnostics
   Inc, dated 15 July 2004, the Group will acquire a further 11.2% of the
   outstanding shares in Somagen Diagnostics Inc from the minority shareholders
   for consideration of £3.7m, following the exercise of put/call options,
   agreed at the time of acquisition in July 2004. On completion of this
   transaction later this month, the Group's shareholding in Somagen Diagnostics
   Inc will increase from 80% to 91.2%.

   There have been no other significant changes in the position of the Group in
   the period since the publication of the Annual Report for the year ended 30
   September 2007.

   At this stage, the Board believes it is making good progress towards
   achieving its expectations for the full year.



   Notes:
   This Interim Management Statement, which is based upon unaudited management
   accounts, has been prepared solely to provide additional information to the
   shareholders of Diploma PLC in order to meet the requirements of the UK
   Listing Authority's Disclosure and Transparency Rules. It should not be
   relied on by any other party, for other purposes. Certain statements made in
   this Statement are forward-looking statements. Such statements have been made
   by the Directors in good faith using information available up until the date
   that they approved this Statement. Forward-looking statements should be
   regarded with caution because of the inherent uncertainties in economic
   trends and business risks.

   The next update on trading is expected to be issued as part of the Half Year
   results for the six months ending 31 March 2008, which are expected to be
   released on 12 May 2008.

   A copy of this Statement, together with further information about Diploma,
   may be viewed on its website at www.diplomaplc.com


   For further enquiries please contact:

   Bruce Thompson, Chief Executive Officer       020 7549 5700
   Nigel Lingwood, Group Finance Director        020 7549 5705
   Ian Seaton, Bankside Consultants              020 7367 8891


   NOTE TO EDITORS:
   Diploma PLC is an international group of specialised distribution businesses
   operating in three sectors:

   Life Sciences - suppliers of consumables, instrumentation and related
   services for research, environmental and clinical applications. Principal
   companies are Anachem and the a1-envirosciences group in Europe and Somagen
   and AMT in Canada.

   Seals - Suppliers of hydraulic seals, kits and components for heavy mobile
   machinery and industrial applications. Principal companies are the Hercules
   Fluid Power Group in North America and FPE and M Seals in Europe.

   Controls - Suppliers of specialised wiring, connectors and control devices
   for technically demanding applications. Principal companies are the IS-Group
   in the UK and US, Sommer Filcon in Germany and Hawco in the UK.

   Within each of these sectors, the Diploma businesses serve industry segments
   with long term growth potential and with the opportunity for sustainable
   superior margins through the quality of customer service, depth of technical
   support and value adding activities.




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