Formal Notice

Diploma PLC
17 January 2008


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

                                                                                
   FOR IMMEDIATE RELEASE                                        17 January 2008

                                  Diploma PLC
                                  Bonus Issue

   Diploma PLC ('the Company') announces that at the Annual General Meeting held
   today a resolution was passed approving the proposed bonus issue of four new
   ordinary shares of 5p each ('New Shares') for each existing ordinary share
   held by each shareholder on the register at close of business on 18 January
   2008 (the 'Bonus Issue'). The New Shares will rank pari passu with the
   existing issued ordinary shares and will therefore exclude the right to
   receive the final dividend for the financial year ended 30 September 2007.

   The Bonus Issue is conditional upon admission of the New Shares to the
   Official List of the UK Listing Authority and to trading on the London Stock
   Exchange. Application has been made for up to 90,591,644 New Shares to be
   admitted to the Official List and to trading, and it is expected that listing
   will become effective and that dealings will commence on 21 January 2008.

   Share certificates in respect of the New Shares are expected to be posted to
   shareholders whose shares are held in certificated form on 25 January 2008.
   The New Shares are expected to be credited to the CREST accounts of those
   shareholders whose ordinary shares are held in CREST on 21 January 2008.

   As a result of the Bonus Issue, it is expected that the price of each
   ordinary share will change to approximately one fifth of its present level,
   when the existing ordinary shares are quoted 'ex-bonus issue' (which is
   expected to be on 21 January 2008). This reflects the fact that each
   shareholder will have five times as many shares, albeit the same percentage
   interest, in the Company as were held immediately before the issue of the New
   Shares. Following admission of the New Shares, the Company will have
   113,239,555 ordinary shares of 5p each admitted to the Official List of the
   UK Listing Authority and to trading on the London Stock Exchange.

   Further copies of this announcement are available at the Company's Offices at
   12 Charterhouse Square, London, EC1M 6AX and at the Company Announcement's
   Department, The London Stock Exchange. A copy of this Announcement may also
   be viewed on the Company's website at www.diplomaplc.com.


   Company Secretary
   Diploma PLC

   For further enquiries please contact

   Nigel Lingwood, Company Secretary         020 7549 5705




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