Director Shareholding

Diageo PLC
17 September 2001



                         TO: Regulatory News Service

                          The London Stock Exchange

                        RE: CHAPTER 16 PARAGRAPH 13 OF

                            CONTINUING OBLIGATIONS

Diageo plc (the 'Company') announces that it received notification on 17
September 2001 for the purposes of Section 329 of the Companies Act 1985 of
transactions by Mourant & Co. Trustees Limited, as trustee of the Diageo
Employee Benefit Trust (the 'Employee Benefit Trust'), in the Company's
Ordinary shares of 28 101/108 pence ('Ordinary Shares') as detailed below. The
Employee Benefit Trust is a discretionary trust for the benefit of employees
of the Company and its subsidiaries and operates primarily in conjunction with
the Company's Long Term Incentive Plan ('LTIP'), approved by shareholders on
11 August 1998.

Notification of purchases

11 September 2001 55,000 Ordinary Shares at a price of £6.6177 per share;

12 September 2001 416,666 Ordinary Shares at a price of £6.8338 per share;

13 September 2001 68,334 Ordinary Shares at a price of £6.8298 per share;


                        --------

                        540,000

                        ========

All executive directors of the Company are potential beneficiaries of the
Employee Benefit Trust:

J M J Keenan

N C Rose

P S Walsh


As a result of the above transactions the total holding of the Employee
Benefit Trust amounts to 7,151,818 Ordinary Shares.


17 September 2001