Diageo update on Burger King

Diageo PLC
18 November 2002

                                                                18 November 2002

                    Diageo update on Burger King transaction


Diageo was informed on 15 November 2002 by the buying group led by Texas Pacific
Group (TPG) that TPG and its partners would not be able to complete the
acquisition of the Burger King Corporation on the terms previously agreed.
However, TPG and its partners expressed a desire to continue in discussions
towards a transaction materially different as to terms and structure.

Diageo is continuing its discussions with TPG, while considering the other
options available to it.

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