Holding in Company

Diploma PLC 9 January 2002 LETTER TO DIPLOMA PLC 8 January 2002 DIPLOMA PLC (THE 'COMPANY') - SEDOL 0182663 This notification supersedes our previous notification to you dated 5 December 2001 and is prompted by purchases totalling 93,000 on 7 January 2002. This notification relates to issued ordinary shares of GBP0.05 each in the capital of the Company (the 'shares') and is given in fulfilment of the obligations imposed by sections 198 to 202 of the Companies Act 1985 (the 'Act'). 1. Notification on behalf of Morley Fund Management Limited (a subsidiary of CGNU plc). 1.1 We hereby notify you on behalf of Morley Fund Management Limited that immediately after the time when the obligation to make this notification arose Morley Fund Management Limited were interested in 3,012,078 shares. 1.2 The identity of the registered holders of the shares to which this notification relates and the number of shares held by each of them are set out in the Appendix below: Morley Fund Management Limited. 2. Notification on behalf of CGNU plc. 2.1 We hereby notify you on behalf of CGNU plc that immediately after the time when the obligation to make this notification arose CGNU plc were interested in 3,012,078 shares giving the CGNU group a total percentage interest in the shares of 13.30%. 2.2 The Identity of the registered holders of the shares to which this notification relates and the number of shares held by each of them are set out in the Appendix below: CGNU plc. If you require further information as to which companies In the CGNU group hold interests in the shares (by virtue of s.203 of the Act) please submit a written request and we will be happy to supply this information. LETTER FROM CGNU PLC APPENDIX: MORLEY FUND MANAGEMENT LIMITED REGISTERED HOLDERS NUMBER OF SHARES HELD BNY Norwich Union Nominees Ltd 1,219,466 (Material) Chase GA Group Nominees Ltd 680,171 (Material) CUIM Nominee Ltd 701,793 (Material) RBSTB Nominees Ltd 100,000 (Material) Vidacos Nominees Ltd 310,648 TOTAL PERCENTAGE INTEREST OF MORLEY FUND MANAGEMENT LIMITED; 13.30% ISSUED SHARE CAPITAL ON WHICH THIS NOTIFICATION IS BASED: 22,647,911 APPENDIX: CGNU PLC REGISTERED HOLDERS NUMBER OF SHARES HELD BNY Norwich Union Nominees Ltd 1,219,466 (Material) Chase GA Group Nominees Ltd 680,171 (Material) CUIM Nominee Ltd 701,793 (Material) RBSTB Nominees Ltd 100,000 (Material) Vidacos Nominees Ltd 310,648 TOTAL PERCENTAGE INTEREST OF CGNU PLC 13.30% ISSUED SHARE CAPITAL ON WHICH THIS NOTIFICATION IS BASED: 22,647,911