Director/PDMR Shareholding

TO: Regulatory Information Service

PR Newswire

RE: PARAGRAPH 3.1.4 OF

THE DISCLOSURE RULES

Notification number 1. listed below was received under Paragraph 3.1.2 of the
Disclosure Rules and Section 324 of the Companies Act 1985.

1. Diageo plc (the "Company") announces that it received notification on 26
October 2006 from Mr PS Walsh, a director, that on 26 October 2006 he exercised
options over 50,000 Ordinary Shares of 28 101/108 pence each in the Company
("Ordinary Shares") granted on 13 September 2000 at a price per share of £5.87
under the Company's Senior Executive Share Option Plan and sold 47,500 Ordinary
Shares at a price per share of £9.805.

Mr Walsh retains beneficial ownership of the balance of 2,500 Ordinary Shares.

As a result of the above, Mr Walsh's interests in the Company's Ordinary Shares
(excluding options, awards under the Company's LTIPs and interests as a
potential beneficiary of the Company's employee benefit trusts) has increased
to 575,936.

2. The Company announces that it received notification on 27 October 2006 from
Appleby Trust (Jersey) Limited, as trustee of the Diageo Employee Benefit Trust
(the "Employee Benefit Trust") that they had transferred 50,000 Ordinary Shares
to a beneficiary of the Employee Benefit Trust following an exercise of options
under the Company's Senior Executive Share Option Plan on 26 October 2006.

As a result of this transaction the total holding of the Employee Benefit Trust
amounts to 6,210,442 shares.

Directors who are potential beneficiaries of the Employee Benefit Trust are PS
Walsh and NC Rose.

27 October 2006