Director/PDMR Shareholding

TO:      Regulatory Information Service                                    
                                                                           
         PR Newswire                                                       
                                                                           
RE:      Paragraph 3.1.4 of the Disclosure and Transparency Rules          

The notification listed below was received under Paragraph 3.1.2 of the
Disclosure and Transparency Rules.

Diageo plc (the "Company") announces that on 10 December 2008 it received
notification from Mr J Grover, a Person Discharging Managerial
Responsibilities, that he had:

1. exercised options over Ordinary Shares of 28 101/108 pence each in the
Company ("Ordinary Shares") under the Company's Senior Executive Share Option
Plan, on 10 December 2008, as follows:

Grant Date              No of Ordinary Shares  Grant price per Ordinary
                               granted                 Share           
                                                                      
11 October 2002                94,857                  £7.59          
                                                                      
10 October 2003                113,674                 £6.49          
                                                                      
11 October 2004                107,282                 £7.07          
                                                                      

Mr Grover subsequently sold 312,655 Ordinary Shares, on 10 December 2008, at a
price of £9.547 per Ordinary Share, and retains beneficial ownership of the
balance of 3,158 Ordinary Shares.

2. sold an additional 50,000 Ordinary Shares on 10 December 2008, at a price of
£9.547 per Ordinary Share.

As a result of the above transactions, the interests of Mr Grover in the
Company's Ordinary Shares (excluding options, awards under the Company's LTIPs
and interests as potential beneficiaries of the Company's Employee Benefit
Trusts) is 149,504.

P D Tunnacliffe

Company Secretary

11 December 2008