Holding in Company

Diploma PLC
9 August 2000


Letter to: Diploma Plc
Dated 8 August 2000


Re: S.198 Companies Act 1985: as amended by The Disclosure of Interest in
    Shares (Amendment) Regulations 1993

In accordance with the Companies Act 1985, (as amended) I write to notify you
that UBS Asset Management Limited and Phillips & Drew Life Limited have an
interest in 4,498,749 ord 5p shares of the Company. This represents 17.87% of
the issued share capital of the Company.

Below is a list of the Registered holders.

UBS Asset Management Limited and Phillips & Drew Life Limited are subsidiaries
of UBS Asset Management Holding (No.2) Limited which is also treated as having
an interest in the above shares.  We are authorised to make this aggregate
disclosure on behalf of UBS Asset Management Holding (No.2) Limited the
registered address of which is:

                   Triton Court
                   14 Finsbury Square
                   London EC2A 1PD

Letter from: UBS Asset Management Limited



                   Total Issued Share Capital - 25,164,345


NAME                                                    QUANTITY

CHASE NOMINEES LIMITED                 A/C GMC3          345,140

CITY OF EDINBURGH COUNCIL              A/C LTH4           55,981

PHILDREW NOMINEES LIMITED              A/C BA             37,750

PHILDREW NOMINEES LIMITED              A/C CC             49,518

PHILDREW NOMINEES LIMITED              A/C COP            10,000

PHILDREW NOMINEES LIMITED              A/C EO             10,300

PHILDREW NOMINEES LIMITED              A/C FGC            36,402

PHILDREW NOMINEES LIMITED              A/C HFM            25,500

PHILDREW NOMINEES LIMITED              A/C JST            21,750

PHILDREW NOMINEES LIMITED              A/C LM             54,500

PHILDREW NOMINEES LIMITED              A/C LF09           82,062

PHILDREW NOMINEES LIMITED              A/C LF20        2,932,633

PHILDREW NOMINEES LIMITED              A/C NEE            64,213

PHILDREW NOMINEES LIMITED              A/C NHC            79,000

PHILDREW NOMINEES LIMITED              A/C PSN            35,500

PHILDREW NOMINEES LIMITED              A/C SHF            48,000

PHILDREW NOMINEES LIMITED              A/C SR             18,000

PHILDREW NOMINEES LIMITED              A/C SRB             6,000

PHILDREW NOMINEES LIMITED              A/C SSF            25,500

PHILDREW NOMINEES LIMITED              A/C TUE           407,500

PHILDREW NOMINEES LIMITED              A/C TW            138,500

PHILDREW NOMINEES LIMITED              A/C UOE            15,000

                                                       4,498,749

                                                          17.87%