Director Shareholding

TO:       Regulatory Information Service                                 
                                                                         
          PR Newswire                                                    
                                                                         
RE:       CHAPTER 16 PARAGRAPH 13 OF                                     
                                                                         
          THE LISTING RULES                                              

Diageo plc (the 'Company') announces:

1) that it received notification on 17 January 2003 for the purposes of Section
329 of the Companies Act 1985 that the trustee of the Diageo plc QUEST (the
'Trust') has transferred 14,205 of the Company's ordinary shares of 28 101/108
pence ('Ordinary Shares') to participants exercising options granted under the
Company's UK Savings-Related Stock Option Scheme and the Grand Metropolitan
Savings-Related Share Option Scheme (the 'Schemes'). The Ordinary Shares were
transferred by Diageo QUEST Trustees Limited as trustee of the Trust. The Trust
is a discretionary trust for the benefit of employees of the Company and its
subsidiaries which operates in conjunction with the Schemes and holds Ordinary
Shares to satisfy existing options granted under the Schemes.

1.           Executive directors who are potential beneficiaries of the   
             Trust are:                                                   
                                                                          
             N C Rose                                                     
                                                                          
             P S Walsh                                                    
                                                                          
2.           Transactions notified on 17 January 2003 in relation to the  
             Trust.                                                       
                                                                          
Date of Transaction      No. of Ordinary Shares    Range of Option Prices 
                         Transferred               of Ordinary Shares     
                                                                          
17.01.03                          14,205           £4.89-£5.05            

The total holding of the Trust now amounts to 478,479 Ordinary Shares.

2) that it received notification on 17 January 2003 for the purposes of Section
329 of the Companies Act 1985 from Diageo Share Ownership Trustees Limited (the
'Trustee'), as trustee of the Diageo 2001 All Employee Share Ownership Plan
(the 'Plan') that:

(i) the Trustee sold 414 Ordinary Shares in respect of participants leaving the
Plan and transferred 3,073 Ordinary Shares to participants leaving the Plan.
The Ordinary Shares were sold at prices of £6.465 per and £6.4365 per share on
16 January and 17 January 2003 respectively by the Trustee. The Plan is an
Inland Revenue approved plan operated by Diageo Group companies for the benefit
of employees of the Company and its subsidiaries.

 Date of      No of Ordinary Shares Transferred            
Transaction                                                
                                                           
17.01.03      3,073                                        
                                                           
 Date of      No of Ordinary Shares Sold          Price Per
Transaction                                       Share    
                                                           
16.01.03      160                                 £6.465   
                                                           
17.01.03      254                                 £6.4365  

 

The total holding of the Trust now amounts to 1,871,105.

 

 

 

17 January 2003