Director Shareholding

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

 

Diageo plc (the 'Company') announces that it received notification on 23 August
2004 for the purposes of Section 329 of the Companies Act 1985 from Hill Street
Trustees Limited as the trustee of the Grand Metropolitan PLC No 2 Employee
Share Trust (the 'Employee Share Trust') that call options to purchase 67,484
Ordinary Shares of 28 101/108 pence in the Company ('Ordinary Shares') were
taken up on 19 August 2004 at a price of £4.23 per Ordinary Share.

The Employee Share Trust is a discretionary trust for the benefit of employees
of the Company and its subsidiaries and operates primarily in conjunction with
former Grand Metropolitan PLC share schemes.

The following directors are potential beneficiaries of the Employee Share
Trust:

N C Rose

P S Walsh

As a result of the above transactions, the Employee Share Trust's total holding
in the Company is 82,012 Ordinary Shares and 380,096 Ordinary Shares subject to
call options.

23 August 2004