Diploma PLC, the international specialised distribution group, is pleased to announce the acquisition of CBISS Limited (“CBISS”), a leading supplier of equipment and services for environmental monitoring and control. CBISS is headquartered in Tranmere, near Liverpool, where it operates from a 7,500 square foot leasehold facility and employs 54 staff. It also has two small satellite locations in Stockport and Farnham. Prior to acquisition, CBISS Limited was owned by its management, comprising Mr and Mrs P McQue and Messrs K Roberts and S Duggan. CBISS is the leading supplier of bespoke Continuous Emission Monitoring Systems (CEMS) to waste incineration plants in the UK and is extending into Power, Chemicals and other industries. It also supplies systems for gas leak detection and process and toxic gas monitoring. Systems are supported by CBISS under comprehensive service contracts, providing repair, calibration and maintenance services and 24 hour, seven days a week, remote diagnostics service. Analyser hire is also available through EIM (Northern) Limited, a subsidiary of CBISS. Operating profit before tax for the CBISS group (including EIM (Northern) Limited) in the year ended 31 July 2006 was £1.2m on sales of £6.2m. Consolidated gross assets at 31 July 2006 were £4.0m, including net cash of approximately £0.9m. The initial cash consideration to be paid, which will be met from the Group’s existing cash resources, is £5.25m, before acquisition costs. This may be subject to an adjustment up to a maximum of £0.25m, based on the net assets at completion. Further deferred consideration up to a maximum of £0.5m will be payable, depending on the operating profits of CBISS in each of the years ending 30 September 2007 and 2008. Bruce Thompson , Chief Executive of Diploma PLC said: “The acquisition of CBISS fits with Diploma’s strategy in its Life Sciences sector of increasing its presence in the Industrial and Environmental market. This acquisition will add scale and critical mass to a1-envirosciences’ operations in the UK and offer opportunities for growth, both in the UK and more broadly in Europe.” For further enquiries please contact: Bruce Thompson, Chief Executive Officer 020 7638 0934 Nigel Lingwood, Group Finance Director 020 7448 4875 Ian Seaton, Bankside Consultants 020 7367 8891