Diageo updates on Burger King

Diageo PLC
07 November 2002

                                                                 7 November 2002

Diageo updates on Burger King transaction



Diageo plc announced on 25 July 2002 the proposed sale of Burger King

Corporation to a buyer group composed of Texas Pacific Group (TPG), Bain

Capital and Goldman Sachs Capital Partners (the buying group). As

announced at the time, the conditions to completion included Burger King

Corporation satisfying certain performance targets during the period to closing

and the purchaser's financing.

Diageo has been informed by the buying group that, in the light of the

conditions existing in Burger King's markets and the buying group's

judgement of their potential effects under the agreement, including their

potential effects under its financing, the buying group wants to discuss

with Diageo potential revisions to the terms of the July agreement.

These discussions are taking place and will continue over the next few

weeks. As with any such discussion this may result in no changes to the

existing terms, changes to the existing terms, or separation of Burger King

Corporation under the transaction to the buying group not proceeding.

Further announcements will be made when appropriate.

                                     -ends-




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