Directors' Notification of Dealing in Shares

Diageo PLC
21 July 2000

                                                         
                             
                      RE:    CHAPTER 16 PARAGRAPH 13 OF  
                                                         
                             CONTINUING OBLIGATIONS      
 
Diageo plc (the 'Company') announces that it received notification on 21July
2000 for the purposes of Section 329 of the Companies Act 1985 that the
trustee of the Diageo plc QUEST (the 'Trust') has transferred 18,025 of the
Company's ordinary shares of 28 101/108 pence ('Ordinary Shares') to
participants exercising options granted under the Company's UK
Savings-Related Stock Option Scheme and the Grand Metropolitan
Savings-Related Share Option Scheme (the 'Schemes'). The Ordinary Shares were
transferred by Diageo QUEST Trustees Limited as trustee of the Trust. The
Trust is a discretionary trust for the benefit of employees of the Company
and its subsidiaries which operates in conjunction with the Schemes and holds
Ordinary Shares to satisfy existing options granted under the Schemes. 
 
 

                                                                              
  1.    Executive directors who are potential beneficiaries of the Trust are: 
        J M J Keenan                                                          
        D N Malamatinas                                                       
        J B McGrath                                                           
        N C Rose                                                              
        C A Storm                                                             
        P S Walsh                                                             
  2.    Transactions notified on 21 July 2000 in relation to the Trust.       
 

                                                                              
  Date of Transaction       No. of Ordinary Shares     Range of Option Prices 
                                 Transferred             of Ordinary Shares   
        21.07.00                       18,025            £3.14 - £4.89 
 
The total holding of the Trust now amounts to 6,038,847 Ordinary Shares. 
 
21 July 2000