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 15 August 2003 for the purposes of Section
329 of the Companies Act 1985 that the trustee of the Diageo plc QUEST (the
'Trust') has transferred 5,143 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 15 August 2003 in relation to the   
             Trust.                                                       
                                                                          
Date of Transaction      No. of Ordinary Shares    Range of Option Prices 
                         Transferred               of Ordinary Shares     
                                                                          
15.08.03                          5,143            £4.47 - £6.07          

 

The total holding of the Trust now amounts to 39,118 Ordinary Shares.

 

 2) that it received notification on 15 August 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 the Trustee sold 295 Ordinary Shares in respect of
participants leaving the Plan. The Ordinary Shares were sold on 11 August 2003
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 Sold          Price  
Transaction                                       Per    
                                                  Share  
                                                         
11.08.03      295                                 £6.6703

 The total holding of the Trust now amounts to 2,198,946 ordinary shares.

 

15 August 2003