Directors' Dealings

Diageo PLC
1 March 2000
 
Diageo plc (the 'Company') announces that it received notification on 1 March
2000 for the purposes of Section 329 of the Companies Act 1985 of
transactions by the trustee of the Diageo Employee Benefit Trust (the
'Employee Benefit Trust') 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. 
 
1.     A notification that Mourant & Co Trustees Limited ('Mourant') as
trustee of the Employee Benefit Trust had purchased and subsequently sold
500,000 of the Company's ordinary shares of 28 101/108 pence ('Ordinary
Shares') pursuant to a put option contract entered into by Mourant on the
date given below (notified to the London Stock Exchange on 8 April 1999). In
addition, that Mourant as trustee of the Employee Benefit Trust had purchased
500,000 Ordinary Shares. 
 

                                                                              
  2.     Transactions notified on 1 March 2000 in relation to the Employee    
         Benefit Trust                                                        
 

                                                                              
  Date            Date of     No of        Purchase     No of       Sale      
  Of              Put         Ordinary     Price of     Ordinary    Price     
  Each            Option      Shares       Ordinary     Shares      Of        
  Transaction     Contract    Purchased    Shares       Sold        Ordinary  
                                                                    Shares    
  29.02.00        16.03.99    500,000      £7.0175      500,000     £6.1875   
  29.02.00                    500,000      £4.659658                          
 

                                                                              
  3.    All executive directors are potential beneficiaries of the Employee   
        Benefit Trust:                                                        
                                                                              
        Sir Anthony Greener                                                   
        J B McGrath                                                           
        J M Keenan                                                            
        D N Malamatinas                                                       
        N C Rose                                                              
        C A Storm                                                             
        P S Walsh   
                                                          
  4.    As a result of the above transactions the total holding of the        
        Employee Benefit Trust amounts to 15,000,000 Ordinary Shares.