Acquisition

Diploma PLC
22 August 2007



                                        12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
                                                 TELEPHONE: [phone]
                                                 FACSIMILE: [phone]

   FOR IMMEDIATE RELEASE

                                                                 22 August 2007

                      DIPLOMA ACQUIRES 90% of M SEALS A/S
                        FOR A MAXIMUM OF £6.2m (DKK67.5m)

   Diploma PLC, the international specialised distribution group, is pleased to
   announce the acquisition of M Seals A/S ('M Seals'), a leading distributor of
   industrial seals in Denmark. M Seals is based in Espergaerde, 45 minutes
   north of Copenhagen, where it operates from a 22,000 square foot leasehold
   facility and employs 25 staff. The company also has a sales office in
   Halmstad, Sweden, which is 11/2 hours from Espergaerde.

   M Seals is a specialised distributor of O-rings, moulded parts, PTFE products
   and shaft seals. Products range from the finest precision seals for hearing
   aids to large heavy duty seals for wind power mills. It has approvals from
   the various industries which it serves, including the Beverage, Air
   conditioning, Wind Turbine and Pharmaceutical industries. M Seals also offers
   value added activities comprising kitting and assembly of spring loaded PTFE
   seals.

   M Seals has a solid level of existing business built on multi-year supply
   agreements with key customers. Of its total sales, 80% are to Industrial OEMs
   with the balance 20% to hydraulic repairers. Some 80% of sales are in
   Denmark, with 20% exported to Sweden, China and other overseas markets.
   Prior to acquisition, M Seals was owned by its management, comprising Martin
   and Eva Laegdsgaard and Thomas Petersen, through their respective holding
   companies Dagelokke Holding ApS and TBP Holding ApS. Thomas Petersen will
   remain with the Company as Managing Director of M Seals and will retain a
   minority interest of 10% in M Seals.

   Put and Call options exist over the minority shares which can be exercised
   after five years, based on an agreed multiple of earnings and subject to a
   maximum cap.

   Profit before tax for M Seals in the year ended 30 June 2007 was DKK9.7m
   (£0.9m) on sales of DKK53.4m (£4.9m). Consolidated gross assets at 30 June
   2007 were DKK24.8m (£2.3m). At completion, net assets are expected to be
   approximately DKK9.0m (£0.8m) including debt of DKK5.0m (£0.5m). The cash
   consideration to be paid for 90% of the business, which will be met from the
   Group's existing cash resources, is DKK67.5m (£6.2m), before acquisition
   costs.

   Bruce Thompson, Chief Executive of Diploma PLC said:

   'M Seals is a good example of a well run and profitable, specialised seal
   distributor with value added activities. The acquisition of M Seals will
   provide a good platform from which to expand the Group's North American
   centred Seals business into Continental Europe.'


   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
to research, environmental and clinical diagnostic laboratories. Principal
companies are Anachem, a1-envirosciences and CBISS in Europe and Somagen in
Canada.

Seals - Suppliers of hydraulic seals, gaskets, cylinders and attachment kits for
heavy mobile machinery. Principal companies are Hercules Bulldog Sealing
Products and HKX in North America and FPE in the UK.

Controls - Suppliers of specialised wiring, connectors, control devices and
fasteners for a range of technically demanding applications. Principal companies
are 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.


Further information on Diploma PLC can be found at www.diplomaplc.com



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