From man find: 
-exec command ;
Execute command; true if 0 status is returned. All following
  arguments to find are taken to be arguments to the command until
  an argument consisting of ';' is encountered. The string '{}'
  is replaced by the current file name being processed everywhere
  it occurs in the arguments to the command, not just in arguments
  where it is alone, as in some versions of find. Both of these
  constructions might need to be escaped (with a '\') or quoted to
  protect them from expansion by the shell. See the EXAMPLES sec
  section for examples of the use of the '-exec' option. The
  specified command is run once for each matched file.
  The command is executed in the starting directory. There are
  unavoidable security problems surrounding use of the -exec option;
  you should use the -execdir option instead.
-exec command {} +
This variant of the -exec option runs the specified command on
  the selected files, but the command line is built by appending
  each selected file name at the end; the total number of
  invocations of the command will be much less than the number of
  matched files. The command line is built in much the same way
  that xargs builds its command lines. Only one instance of '{}'
  is allowed within the command. The command is executed in
  the starting directory.
So, the way I understand it, \; executes a separate command for each file found by find, whereas \+ appends the files and executes a single command on all of them. The \ is an escape character, so it's: 
ls testdir1; ls testdir2 
vs
ls testdir1 testdir2
Doing the above in my shell mirrored the output in your question.
example of when you would want to use \+
Suppose two files, 1.tmp and 2.tmp:
1.tmp:
1
2
3
2.tmp:
0
2
3
With \;:
 find *.tmp -exec diff {} \;
> diff: missing operand after `1.tmp'
> diff: Try `diff --help' for more information.
> diff: missing operand after `2.tmp'
> diff: Try `diff --help' for more information.
Whereas if you use \+ (to concatenate the results of find):
find *.tmp -exec diff {} \+
1c1,3
< 1
---
> 0
> 2
> 30
So in this case it's the difference between diff 1.tmp; diff 2.tmp and diff 1.tmp 2.tmp
There are cases where \; is appropriate and \+ will be necessary. Using \+ with rm is one such instance, where if you are removing a large number of files performance (speed) will be superior to \;.