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 26 September 2003 for the purposes of
Section 329 of the Companies Act 1985 that the trustee of the Diageo plc QUEST
(the 'Trust') has transferred 1,104 of the Company's 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 26 September 2003 in relation to the
             Trust.                                                       
                                                                          
Date of Transaction      No. of Ordinary Shares    Range of Option Prices 
                         Transferred               of Ordinary Shares     
                                                                          
26.09.03                          1,104            £3.53                  

The total holding of the Trust now amounts to 5,013 Ordinary Shares.

2) that it received notification on 26 September 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 206 Ordinary Shares in
respect of participants leaving the Plan. The Ordinary Shares were sold on 25
September 2003 at a price of £6.5665 per Ordinary Share 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 Per 
Transaction                                       Share     
                                                            
25.09.03      206                                 £6.5665   

 The total holding of the Trust now amounts to 2,221,572 ordinary shares.

  

26 September 2003