Director's Shareholdings

Diageo PLC
4 September 2000

                                                         
                      TO:    Regulatory News Service     
                                                         
                             The London Stock Exchange   
                      RE:    CHAPTER 16 PARAGRAPH 13 OF  
                                                         
                             CONTINUING OBLIGATIONS      
 
Diageo plc (the 'Company') announces that Mr J B McGrath, a director,
notified the company on 4 September 2000 that on 1 September 2000 he
exercised options over a total of 4,151 ordinary shares of 28 101/108 pence
('Ordinary Shares') granted to him under the Grand Metropolitan
Savings-Related Share Option Scheme as follows: 
 

                                                               
                 Date            No of Shares    Option Price  
                 22 June 1995    3,296           £3.14         
                 26 June 1997    855             £4.56         
 
As a result of these transactions, Mr McGrath's beneficial interests in the
Company's Ordinary Shares (excluding options, awards under the Company's
LTIPs and also interests as a potential beneficiary of the Grand Metropolitan
No 2 Employee Share Trust, the Diageo Employee Benefit Trust and the Diageo
plc QUEST) have increased to 45,533 (of which 2,500 are held as a
non-beneficial interest).