Director Shareholding

TO: Regulatory Information Service
                                  
    PR Newswire                   
                                  
RE: CHAPTER 16 PARAGRAPH 13 OF    
                                  
    CONTINUING OBLIGATIONS        
                                  

 

Diageo plc (the 'Company') announces the following:

1) that it received notification on 11 October 2004 from the Trustee that:

(i) the Trustee purchased 46,751 Ordinary Shares of 28 101/108 pence in the
Company ('Ordinary Shares') in respect of participants in the Plan on 11
October 2004 at a price of 707p per share. The Ordinary Shares were purchased
by Diageo Share Ownership Trustees Limited, which holds Ordinary Shares as
trustee of the Plan;

(ii) that the following directors of the Company were allocated Ordinary Shares
on 11 October 2004 under the Plan, from those purchased by the Trustee as
disclosed in (i) above:

Name of Director Number of Ordinary Shares
                                          
N C Rose         26                       
                                          
P S Walsh        26                       
                                          

The number of Ordinary Shares allocated comprises those purchased by the
Trustee using an amount which the employee has chosen to have deducted from
salary ('Sharepurchase') and those awarded to the employee by the Company
('Sharematch') on the basis of one Sharematch Ordinary Share for every two
Sharepurchase Ordinary Shares.

The Sharepurchase Ordinary Shares were purchased and the Sharematch Ordinary
Shares were awarded at a price per share of 707p.

The Ordinary Shares are held by the Trustee. Sharepurchase Ordinary Shares can
normally be sold at any time. Sharematch Ordinary Shares cannot normally be
disposed of for a period of three years after the award date.

As a result of purchases and awards made by the Trustee on behalf of the
Company on 11 October 2004 in respect of all participants in the Plan, the
total holding of the Trustee now amounts to 3,400,878 Ordinary Shares.

 

2) that it received notification on 11 October 2004 from Lord Blyth that he has
purchased 1,037 Ordinary Shares on 11 October 2004 under an arrangement with
the Company, whereby he has agreed to use an amount of £7,375 per month, net of
tax, from his fees to purchase Ordinary Shares. Lord Blyth has agreed to retain
the Ordinary Shares while he remains a director of the Company.

The Ordinary Shares were purchased at a price per share of 707p.

As a result of this purchase, Lord Blyth's interest in Ordinary Shares has
increased to 96,874.

 

3) that today the directors named below were granted the following options over
Ordinary Shares under the Company's Senior Executive Share Option Plan:

Name of Director No of Ordinary Shares
                                      
N C Rose         278,465              
                                      
P S Walsh        493,281              
                                      

Each option was granted at a price of £7.07 per Ordinary Share and is
exercisable between 11 October 2007 and 10 October 2014, subject to
satisfaction of performance criteria.

As a result of the above, these directors' interests in the Company's Ordinary
Shares (excluding options, awards under the Company's LTIPs and also interests
as potential beneficiaries of the Grand Metropolitan No 2 Employee Share Trust
and the Diageo Employee Benefit Trust) are as follows:

Name of Director Number of Ordinary Shares
                                          
N C Rose         172,831                  
                                          
P S Walsh        672,478                  
                                          

11 October 2004