Directors' Shareholdings

Diageo PLC
5 March 2001



                      RE:    CHAPTER 16 PARAGRAPH 13 OF  
                             CONTINUING OBLIGATIONS      
 

Diageo plc (the 'Company') announces that Mr P S Walsh, a director, notified
the Company today that on 1 March 2001, he sold 15,000 of the Company's
ordinary shares of 28 101/108 pence ('Ordinary Shares') at a price of £7.15
per Ordinary Share.  Further, that on 2 March 2001, he exercised an option
over 30,000 American Depositary Shares ('ADSs')*, granted to him on 12 January
1995 under the Company's US Stock Option Plan at a price of $26.09 per ADS. 
On 5 March 2001, Mr Walsh subsequently sold 20,000 ADSs at a price of $42.46
per ADS.  The balance of 10,000 ADSs was retained in Mr Walsh's own name.

As a result of these transactions, Mr Walsh's beneficial interests in the
Company's Ordinary Shares (excluding options, awards under the Company's LTIPs
and also interests as a potential beneficiary of Diageo Employee Benefit
Trust, Grand Metropolitan No. 2 Employee Share Trust, Diageo plc QUEST and
Pillsbury 401 (K) Savings Plan) has increased to 327,979**.


*   1 ADS is equivalent to 4 Ordinary Shares
**  of which 47,548 are held in the form of ADSs.
 

5 March 2001