Holding in Company

Diploma PLC
2 May 2001


Letter to Diploma PLC
1 May 2001

Pursuant to Section 198 of the Companies Act 1985 (the 'Act') we hereby notify
you that:

(a) Oryx International Growth Fund Limited ('ORYX'), PO Box 208, Bermuda House,
    St Julian's Avenue, St Peter Port, Guernsey CI is a party to an agreement
    to which section 204 of the Act applies (the 'Agreement').  The other party
    to this agreement is:-

    J O Hambro Capital Management Limited ('JOHCM'), Ground Floor, Ryder Court,
    14 Ryder Street, London SW1A 6QB.

(b) As at 1 May 2001, ORYX, was interested for the purposes of the Act in       
    300,000 ordinary shares in the  relevant share capital, as defined in 
    section 198 (2) of the Act, of Diploma PLC (the 'Relevant Shares'), which
    represents 1.19% of that Class of capital based on an issued share capital
    of 25,164,000 ordinary shares.

(c) 1,817,000 of the Relevant Shares are shares in which ORYX will be interested
    by virtue of sections 204 and 205 of the Act.

(d) The Relevant Shares are held or will be held in the following names:

    HSBC Global Custody London Limited                     300,000
    Goldman Sachs International TNA                        260,000
    Goldman Sachs International THO                        150,000
    Goldman Sachs International TEU                      1,052,000
    Goldman Sachs International THT                         55,000

    Total                                1,817,000 shares = 7.21%


Letter from Oryx International Growth Fund Limited