Director Shareholding

Diageo PLC
29 May 2001


TO: Regulatory News Service

The London Stock Exchange

RE: CHAPTER 16 PARAGRAPH 13 OF

CONTINUING OBLIGATIONS


Diageo plc (the 'Company') announces that Mr P S Walsh, a director, notified
the Company today that on 25 May 2001 he exercised an option over 5,000 of the
Company's American Depositary Shares ('ADSs')*, granted to him on 30 June 1995
under the Company's US Stock Option Plan at a price of $24.55 per ADS and
subsequently sold 4,500 ADSs at a price of $42.785 per ADS on the same day.
The balance of 500 ADSs was retained in Mr Walsh's own name, in the form of
ordinary shares of 28 101/108 pence ('Ordinary Shares').

As a result of these transactions, Mr Walsh's beneficial interest in the
Company's Ordinary Shares (excluding options, awards under the Company's LTIPs
and also interests as a potential beneficiary of Diageo Employee Benefit
Trust, Grand Metropolitan No. 2 Employee Share Trust, Diageo plc QUEST and
Pillsbury 401 (K) Savings Plan) has increased to 341,527**.


* 1 ADS is equivalent to 4 Ordinary Shares

** of which 4,932 are held in the form of ADSs.



29 May 2001