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 12 September 2003 from Ms. M. Lilja, a
director, that she purchased on 11 September 2003 3,025 of the Company's
ordinary shares of 28 101/108 pence ('Ordinary Shares') at a price per Ordinary
Share of 655.96p.

As a result of this transaction Ms. Lilja's interest in Ordinary Shares has
increased to 4,532.

2) that it received notification on 12 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 4,853 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 12 September 2003 in relation to the
             Trust.                                                       
                                                                          
Date of Transaction      No. of Ordinary Shares    Range of Option Prices 
                         Transferred               of Ordinary Shares     
                                                                          
12.09.03                          4,853            £3.53 - £6.07          

The total holding of the Trust now amounts to 12,414 Ordinary Shares.

3) that it received notification on 12 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 18 Ordinary Shares in respect
of participants leaving the Plan. The Ordinary Shares were sold on 8 September
2003 at a price of 663.65p per share 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 Sold          Price Per 
Transaction                                       Share     
                                                            
08.09.03      18                                  £6.6365   

 The total holding of the Trust now amounts to 2,221,801 ordinary shares.

4) that it received notification on 12 September 2003 for the purposes of
Section 329 of the Companies Act 1985 from Mourant & Co Trustees Limited, as
trustee of the Diageo Employee Benefit Trust ('Mourant'), that Mourant had sold
on 11 September 2003 400,240 Ordinary Shares from the Employee Benefit Trust at
a price of £6.561575 per Ordinary Share.

            Executive directors who are potential beneficiaries of the    
            Employee Benefit Trust are:                                   
                                                                          
            N C Rose                                                      
                                                                          
            P S Walsh                                                     

 As a result of this transaction the total holding of the Employee Benefit
Trust amounts to 5,776,940 ordinary shares.

  

12 September 2003