Acquisition

Diageo PLC
16 May 2002



15 May 2002


              Diageo reports further progress on Seagram disposals

Diageo announces further plans for the future of former Seagram businesses.
Following discussions, Diageo will take ownership of the Don Julio tequila
business, while Pernod Ricard will acquire Passport, a Scotch whisky business.

Don Julio is an ultra-premium tequila, and with this acquisition comes the
business' agave fields, as well as its Atotonilco production plant.

Today's news follows announcements last week that Diageo has received regulatory
approval from the US Federal Trade Commission to finalize the sale of its Malibu
business to Allied Domecq, and the agreement of the sale of the Seagram mixers
to the Coca-Cola Company.

                                    - ends -

Diageo is the world's leading premium drinks business with an unrivalled
collection of brands including Johnnie Walker, Guinness, Smirnoff, J&B, Baileys,
Cuervo, Tanqueray and Captain Morgan.

Diageo is a global company, trading in over 180 markets around the world. The
company is listed both on the London Stock Exchange (DGE) and on the New York
Stock Exchange (DEO). For more information about Diageo, its brands, people and
performance, visit us at: www.diageo.com.



For further information please contact:

Investors:  Rachel Kendelton        [phone]  [e-mail]
Media:      Jane Lawrie             [phone]
            Isabelle Thomas         [phone]  [e-mail]



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