Director Shareholding

Diageo PLC
21 September 2000

                     RE: Chapter 16 Paragraph 13 of
                         Continuing Obligations


Diageo plc (the 'Company') announces that Mr J B McGrath, a director, notified
the Company on 21 September 2000 that on 19 September 2000, he disposed of
21,270 of the Company's ordinary shares of 28 101/108 pence ('Ordinary
Shares') at a price of £5.85 per Ordinary Share.

As a result of this transaction, 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 decreased to 77,012 Ordinary Shares (of which 2,500 are held as a
non-beneficial interest).

The previously notified shareholding of Mr McGrath (notification dated 8
September 2000) was understated by 2,500 Ordinary Shares and the figure given
above has now been amended accordingly.