Director Shareholding

Diageo PLC
11 April 2001





TO: Regulatory News Service

The London Stock Exchange

RE: CHAPTER 16 PARAGRAPH 13 OF

CONTINUING OBLIGATIONS




Diageo plc (the 'Company') announces that Mr P S Walsh, a director, notified
the Company today that on 9 April 2001 he exercised an option over 15,880 of
the Company's American Depositary Shares ('ADSs')*, granted to him on 12
January 1995 under the Company's US Stock Option Plan at a price of $24.59 per
ADS and subsequently sold 14,000 ADSs at a price of $41.935 per ADS on the
same day. The balance of 1,880 ADSs was retained in Mr Walsh's own name, in
the form of ordinary shares of 28 101/108 pence ('Ordinary Shares').



As a result of these transactions, Mr Walsh's beneficial interest in the
Company's Ordinary Shares (excluding options, awards under the Company's LTIPs
and also interests as a potential beneficiary of Diageo Employee Benefit
Trust, Grand Metropolitan No. 2 Employee Share Trust, Diageo plc QUEST and
Pillsbury 401 (K) Savings Plan) has increased to 335,527£.



The previously notified beneficial interest of Mr P S Walsh (notification
dated 5 March 2001) was understated by 28 Ordinary Shares and the figure given
above has been amended accordingly.



* 1 ADS is equivalent to 4 Ordinary Shares

£ of which 4,932 are held in the form of ADSs.



11 April 2001