Holding in Company

Diploma PLC
17 April 2001

LETTER TO DIPLOMA PLC, DATED 17TH APRIL 2001

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

(a)J O Hambro Capital Management Limited ('JOHCM'). Ground Floor, Ryder Court,  
   14 Ryder Street, London SW1Y 6QB is a party to an agreement to which section 
   204 of the Act applies (the 'Agreement'). The other party to this agreement  
   is:-

   Oryx International Growth Fund Limited ('ORYX'), PO Box 208, Bermuda House,  
   St Julian's Avenue, St Peter Port, Guernsey CI.

(b)As at 17 April 2001, JOHCM was interested for the purposes of the Act in     
   925,000 ordinary shares in the relevant share capital, as defined in Section 
   198(2) of the Act, of Diploma PLC (the 'Relevant Shares'), which represents  
   3.68% of that Class of capital based on an issued share capital of 25,164,000
   ordinary shares.

(c)1,225,500 of the Relevant Shares are shares in which JOHCM will be interested
   by virtue of sections 204 and 205 of the Act. This amounts to 4.87% of the   
   ordinary shares in issue based on an issued share capital of 25,164,000      
   shares.

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

   HSBC Global Custody London Limited               300,000
   Goldman Sachs International TNA                 168,000
   Goldman Sachs International THO                 117,000
   Goldman Sachs International TEU                 585,000
   Goldman Sachs International THT                  55,000

   Total                                 1,225,000 shares = 4.87%

LETTER FROM JO HAMBRO CAPITAL MANAGEMENT LIMITED.

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