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 14
October 2004 for the purposes of Section 329 of the Companies Act 1985, that
Mourant & Co Trustees Limited ('Mourant'), as trustee of the Diageo Employee
Benefit Trust (the 'Employee Benefit Trust'):

purchased 700,000 Ordinary shares of 28 101/108 pence each in the Company
('Ordinary Shares') on 11 October 2004 at a price of £7.119761 per share; and

transferred 100,000 Ordinary Shares to a beneficiary of the Employee Benefit
Trust on 26 April 2004, following an exercise of options under the Company's
Senior Executive Share Option Plan (which exercise was announced on 26 April
2004).

The Employee Benefit Trust is a discretionary trust for the benefit of
employees of the Company and its subsidiaries and operates primarily in
conjunction with the Company's Long Term Incentive Plan, now called the Total
Shareholder Return plan (the 'Plan'), approved by shareholders in August 1998
and the Senior Executive Share Option Plan, approved by shareholders in
November 1999.

Directors who are potential beneficiaries of the Employee Benefit Trust are NC
Rose and PS Walsh.

As a result of the above transactions, the total holding of the Employee
Benefit Trust amounts to 6,945,249 Ordinary Shares.

14 October 2004