Statement re Seagram

Diageo PLC
24 October 2001


                                                               23 October 2001

              Federal Trade Commission initial ruling on Seagram

Diageo plc confirms that following a meeting of the commissioners today, the
FTC has challenged the acquisition of the Seagram wine and spirits business
from Vivendi Universal by Diageo and Pernod Ricard. However, the FTC, Diageo
and Pernod Ricard have agreed to further discussions in an effort to reach a
settlement.

Commenting Paul Walsh, Chief Executive of Diageo plc, said:
'We are encouraged by the FTC's willingness to have further discussions which
we will pursue over the next few weeks.'


                                    -ENDS-


For further information

Media enquiries to      Kathryn Partridge     + 00 44 (0) 20 7927 5225/5967

[e-mail]

Investor enquiries to Catherine James     + 00 44 (0) 20 7927 5272

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                Kelly Padgett          +00 (1) 202 715 1110

Notes to editor

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

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 June 2000) and its Pillsbury packaged food business (announced July
2000).

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.