Diageo notes publication

Diageo PLC
21 March 2003

                                                                   21 March 2003


   DIAGEO NOTES PUBLICATION OF PROPOSED READY TO DRINK REGULATIONS IN THE US

The United States Alcohol & Tobacco Tax & Trade Bureau (TTB) yesterday published
proposed new regulations on the formulation, labeling and advertising of ready
to drink (RTDs) products or 'flavoured malt beverages' (FMBs). These proposed
regulations provide for a public comment period of 90 days. It is not
anticipated that the final regulations will become binding for a significant
period of time.

These proposals would limit the alcohol contribution from flavours and other
ingredients containing alcohol to 0.5% alcohol by volume. The proposals also
solicit comments on other approaches, including one requiring that the majority
of the alcohol in an FMB would be derived from the malt base. The proposals
include additional regulations on labeling and advertising for FMBs. They
specifically authorise the use of distilled spirit brand names on malt
beverages.

Among the products covered by the proposals would be Diageo's Smirnoff Ice.

These proposals mark a change in US policy under which FMBs have been produced,
marketed and sold for the past 30 years, during which FMBs experienced strong
growth, vigorous competition and consumer satisfaction. Diageo intends to use
the 90-day comment period to provide input on the proposed regulations.

                                     -Ends-

Diageo contacts:

Investors Relations           Kelly Padgett          +00 1 202 715 1110

                              Catherine James        +00 44 (0) 927 5272

Media Relations               Gary Galanis           +00 1 203 359 7193


Notes to editor:

Diageo is the world's leading premium drinks business with an outstanding
collection of beverage alcohol brands across spirits, wine and beer categories.
These brands include: Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Jose
Cuervo, Tanqueray, Captain Morgan, and Beaulieu Vineyard and Sterling Vineyards
wines.

Diageo is a global company, trading in more than 200 countries around the world.
The company is listed on both the New York Stock Exchange (DEO) and the London
Stock Exchange (DGE). For more information about Diageo, its people, brands and
performance, visit us at www.diageo.com



Diageo sells 34 RTD/FMB products in 39 countries worldwide. In the six months to
31 December 2002 Diageo sales of RTDs were £800m. Smirnoff Ice is sold in 34
countries globally, with annual sales of £600m.




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