Disposal

Diageo PLC
3 September 2001


                                                              3 September 2001



Diageo plc agrees sale of Croft and Delaforce port and sherry businesses



Diageo plc today announces the sale of Croft and Delaforce port and sherry
businesses, to a consortium of Gonzalez Byass S.A. and Taylor Fonseca S.A. for
a consideration of Euro82.5m.

Gonzalez Byass acquires the Croft sherry business and ownership of the
company's assets in Spain. Taylor Fonseca have bought the ports assets in
Portugal, the Delaforce port brand and the rights to the Croft brand for
marketing port worldwide. Diageo will retain the right to market Croft Brandy.

                                    -ends-

For further information

Investors Enquiries     Catherine James     020 7927 5272

Media Enquiries         Isabelle Thomas     020 7927 5967



Note to editors

Diageo is the world's leading premium drinks company.  Formed in December 1997
by the merger of Guinness and GrandMet, Diageo has an unrivalled portfolio of
brands including Smirnoff, Johnnie Walker, Tanqueray, Guinness, J&B, Baileys,
Malibu and Cuervo.

In a strategic move to drive organic growth, Diageo is realigning itself
behind its premium drinks business, Guinness UDV. To do this, Diageo is
exiting its food businesses--the quick service restaurant company Burger King
(announced on 22 June 2000) and its Pillsbury packaged food business
(announced 17 July 2000).

Diageo is a global company, trading in some 185 markets around the world. The
company is listed both on the London Stock Exchange (DGE) and on the New York
Stock Exchange (DEO).  For more information about Diageo, its brands, people
and performance, visit us at www.diageo.com.