Diploma Regulatory News (DPLM)

DIPLOMA PLC

12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX

TELEPHONE: +44 (0)20 7549 5700

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FOR IMMEDIATE RELEASE

27 January 2011

DIPLOMA PLC - DIRECTORS' LTIP AWARDS

Diploma PLC has today been notified that the following Directors have partially exercised share awards granted under the Diploma PLC 2004 Long Term Incentive Plan (the "2004 LTIP") and have become entitled to acquire ordinary shares in the Company as set out below. The following Directors have disposed of ordinary shares in the Company also as set out below.

The share awards have vested to the extent that the applicable performance conditions have been met as measured over a three year period ended 30 September 2010. Further details relating to the performance conditions are set out in the Annual Report 2010.

Each of the Directors as set out above, have pledged the net received number of ordinary shares to which they became entitled as Investment Shares under the Diploma PLC 2011 Share Matching Plan (the "SMP"), which was approved by shareholders at the AGM on 12 January 2011. Accordingly, the Remuneration Committee has recommended that the Board approve the following Awards under the SMP:

The Awards made today are subject to the achievement of performance conditions measured over a three year performance period ending 30 September 2013 and represent the maximum number of ordinary shares over which these Awards may vest.

A summary of the SMP, including the performance conditions relating to these Awards, was set out in the Circular mailed to Shareholders on 6 December 2010.

Following these transactions, the number of ordinary shares in the Company held by the Trust has been reduced by 138,461 to 594,512.

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