Regulatory Approval

Diageo PLC
9 May 2002

NEWS RELEASE

                                                                      9 May 2002



               Diageo receives regulatory approval on Malibu sale



Diageo announces that it has received regulatory approval from the US Federal
Trade Commission to finalize the sale of its Malibu business to Allied Domecq.
The transaction, which was announced on 27 February 2002 is expected to close by
Wednesday 22 May 2002. Diageo will receive £560m.

In addition, Diageo will receive $75m from Vivendi Universal in connection with
completing the transaction and the dismissal of the litigation which Destileria
Serralles and Allied Domecq have been pursuing with regard to Captain Morgan.
Diageo will also sell its Californian-based Mumm Cuvee Napa sparkling wine
business to Allied Domecq for £27.5m.





                                     -ends-

Notes to Editor

Diageo is the world's leading premium drinks business with an unrivalled
collection of brands including Johnnie Walker, Guinness, Smirnoff, J&B, Baileys,
Cuervo, Tanqueray and Captain Morgan.

Diageo is a global company, trading in over 180 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.




For further information please contact

Rachel Kentleton      020 7927 4911          Investor Relations

[e-mail]

Isabelle Thomas     020 7927 5967          Corporate Communications

[e-mail]









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