Disposal

DIPLOMA PLC
20 July 1999



Diploma PLC has conditionally agreed to sell IG Ltd, manufacturer of steel
lintels, doors and other components for housebuilding, to Expamet International
PLC for a cash consideration of £17.1m, before costs.  The sale is conditional
principally upon approval by Expamet's shareholders at an EGM to be held on 6th
August 1999.

The divestment of IG is in line with Diploma's strategy of expanding and
investing in specialised distribution businesses servicing industries with long
term growth potential, while reducing dependence on more mature and cyclical
businesses.

The cash consideration will be subject to an adjustment of the amount by which
IG's net assets on completion vary from the estimated £11.25m arrived at after
accounting for certain properties (with a net book value of £1.1m) which will be
retained by Diploma and a final dividend.  IG's profits before interest and tax
for the year ended 30 September 1998 were £3.3m and for the six months to 31
March 1999 £1.1m (£1.5m in the same period of the previous year).  Goodwill
previously written off to reserves was £0.2m.

The sale proceeds will be added to the Group's cash resources.  There is not
expected to be any tax charge on the sale.