Diploma Regulatory News (DPLM)

DIPLOMA PLC

12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX

TELEPHONE: +44 (0)20 7549 5700

FACSIMILE: +44 (0)20 7549 5715

FOR IMMEDIATE RELEASE

30 January 2018

DIPLOMA PLC

APPOINTMENT OF NEW CHIEF EXECUTIVE OFFICER

Diploma PLC ("the Company") is pleased to announce that Richard Ingram will join the Board on 23 April 2018 as Chief Executive Officer ("CEO") designate.

As previously announced, Bruce Thompson will retire from Diploma PLC at the end of September 2018. Bruce has agreed to stand down from the Board and hand over his CEO responsibilities to Richard at the Board meeting on 8 May 2018. Bruce will remain available to support an orderly transition until his retirement.

Richard brings a wide range of executive and leadership expertise to Diploma PLC with proven experience of growing international industrial businesses. Since May 2014 he has been President of Smiths Detection, a division of Smiths Group plc with revenues of ca. £700m and ca. 2,500 employees. Having qualified as an engineer, Richard's early career included 5 years in the oil and petrochemical industry at Shell, followed by 8 years in product marketing and sales at Lucas Automotive. More recently he held senior management positions in the aerospace industry for 12 years at TRW Aeronautical Systems and at Goodrich Corporation. His career has included a number of overseas postings.

John Nicholas, Chairman of Diploma PLC commented:

"Richard is a proven, successful business leader and I'm delighted to welcome him to the Board. He brings strategic vision and a strong track record of creating value, he is the ideal person to lead Diploma in the next phase of evolution and growth and we all look forward to working with him."

Richard Ingram commented:

"Under Bruce's leadership, Diploma has developed an excellent track record of organic and acquisitive growth in its chosen fields. I am delighted to be joining at this time, and look forward to working with John and the Board in order to lead Diploma on the next stage of its development."

For further information, please contact:

Additional Information

1. As Chief Executive Officer of Diploma PLC, Richard will receive an annual salary of £535,000 and a pension allowance of 15% of base salary. Richard will also be eligible to participate in the Annual Bonus Plan up to a maximum of 125% of base salary and the Long-Term Incentive Plan up to 175% of base salary. All these remuneration arrangements are consistent with the terms of the Directors' Remuneration Policy which is set out in the 2017 Annual Report & Accounts and was approved by shareholders at the AGM on 17 January 2018.

2. Diploma PLC will also compensate Richard for the balance of his existing share based long-term incentives with Smiths Group plc. In the year ending 30 September 2018, Richard will be eligible for a performance bonus of up to £1.0 million before tax, of which up to 40% will be payable in cash and the balance in restricted shares in Diploma PLC. Any such compensation paid by Diploma PLC will be subject to a clawback in full should he resign within 12 months of the date of his appointment as Chief Executive Officer. To compensate for incentives relating to the years ending September 2019 and September 2020, Richard will receive an award of shares under the Company's Long-Term Incentive Plan representing 116.7% and 175% of base salary, respectively. Vesting will be dependent upon performance conditions set out in the Company's Long-Term Incentive Plan. Richard will also be required to comply with the Company's shareholding requirements.

3. No information is required to be disclosed pursuant to Listing Rule 9.6.13 in respect of Richard Ingram's appointment as a Director of the Company.

NOTE TO EDITORS:

Diploma PLC is an international group of businesses supplying specialised technical products and services to the Life Sciences, Seals and Controls industries.

Diploma's businesses are focussed on supplying essential products and services which are funded by the customers' operating rather than their capital budgets, providing recurring income and stable revenue growth.

Our businesses then design their individual business models to closely meet the requirements of their customers, offering a blend of high quality customer service, deep technical support and value adding activities. By supplying essential solutions, not just products, we build strong long term relationships with our customers and suppliers, which support attractive and sustainable margins.

Finally we encourage an entrepreneurial culture in our businesses through our decentralised management structure. We want our managers to feel that they have the freedom to run their own businesses, while being able to draw on the support and resources of a larger group. These essential values ensure that decisions are made close to the customer and that the businesses are agile and responsive to changes in the market and the competitive environment.

The Group employs ca. 1,700 employees and its principal operating businesses are located in the UK, Northern Europe, North America and Australia.

Over the last ten years, the Group has grown adjusted earnings per share at an average of ca. 14% p.a. through a combination of underlying growth and acquisitions. Diploma is a member of the FTSE 250 with a market capitalisation of ca. £1.3bn.

Further information on Diploma PLC, together with a copy of this Announcement, is available at www.diplomaplc.com

LEI: 2138008OG17VYG8FGR19