Holding in Company

Diploma PLC
22 November 2000


LETTER TO:  DIPLOMA PLC
DATED 21 NOVEMBER 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 has an
interest in 4,277,693 ord 5p shares of the Company. This represents 16.99% 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 is a 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: PHILLIPS & DREW FUND MANAGEMENT LIMITED



                           Diploma PLC

              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
NORTHERN TRUST CO                    A/C NTH1            79,000
PHILDREW NOMINEES LIMITED            A/C BA              37,750
PHILDREW NOMINEES LIMITED            A/C CC              49,518
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            79,106
PHILDREW NOMINEES LIMITED            A/C LF20         2,800,533
PHILDREW NOMINEES LIMITED            A/C NEE             64,213
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 TUE            407,500
PHILDREW NOMINEES LIMITED            A/C TW             138,500
                                                      ---------
                                                      4,277,693
                                                      ---------
                                                         16.99%