Directors' Dealings

DIAGEO PLC
8 September 1999


     
RE:  CHAPTER 16 PARAGRAPH 13 OF
     CONTINUING OBLIGATIONS


Diageo plc (the 'Company') announces that Mr. N C Rose, a
director,  notified the Company on 7 September 1999  that
on  1  September 1999 he exercised an option  over  4,886
ordinary  shares of 28 101/108 pence ('Ordinary  Shares')
granted   to  him  on  24  June  1994  under  the   Grand
Metropolitan Savings-Related  Share Option  Scheme  at  a
price of £3.53 per Ordinary Share.

As  a result of this transaction, Mr Rose's interests  in
the  Company's Ordinary Shares (excluding options, awards
under  the  Company's  LTIPs  and  also  interests  as  a
potential  beneficiary  of the  Grand  Metropolitan  No.2
Employee  Share  Trust  and the Diageo  Employee  Benefit
Trust) have increased to 29,018.