Directors' Shareholdings

Diageo PLC
20 October 2000


                      RE:    CHAPTER 16 PARAGRAPH 13 OF  
                                                         
                             CONTINUING OBLIGATIONS      
 
Diageo plc (the 'Company') announces that the following directors were
allocated ordinary shares of 28 101/108 pence ('Ordinary Shares') in the
Company on 20 October 2000 under Inland Revenue approved profit sharing
schemes operated by Diageo Group companies together with other eligible
employees under these schemes:

Name of Director                 Number of Shares

J B McGrath                            1,267
N C Rose                               1,267
C A Storm                              1,267
P S Walsh                              1,267

There was no price payable for the allocation.  The Ordinary Shares are held
by trustees and cannot normally be disposed of for a period of two years after
the allocation.

As a result of the above, these directors' interests in the Company's Ordinary
Shares (excluding options, awards under the Company's LTIPs and also interests
as potential beneficiaries of the Diageo Employee Benefit Trust, the Diageo
plc QUEST, the Grand Metropolitan No 2 Employee Share Trust; and in the case
of Mr  C A Storm, only the Diageo plc Employee Incentive Trusts 1994 and 1996;
and in the case of Mr Walsh only, the Pillsbury 401(K) Savings Plan) are as
follows:

Name of Director    Number of Shares


J B McGrath          78,279
(of which 2,500 are held as a non-beneficial interest)

N C Rose             29,360

C A Storm            87,963

P S Walsh            118,399
(of which 7,548 are held in the form of American Depositary Shares)

The Company further announces that it received notification on 20 October 2000
for the purposes of Section 329 of the Companies Act 1985 that
the trustee of the Diageo plc QUEST (the 'Trust') has transferred 15,009 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                                                          
        J B McGrath                                                           
        N C Rose                                                              
        C A Storm                                                             
        P S Walsh                                                             

  2.    Transactions notified on 20 October 2000 in relation to the Trust.   
 
                                                                              
  Date of Transaction    No. of Ordinary Shares        Range of Option Prices 
                         Transferred                   of Ordinary Shares     
  20.10.00                15,009                       £3.14 - £4.89          
 
The total holding of the Trust now amounts to 5,426,512 Ordinary Shares.