Director Shareholding

Diageo PLC
12 September 2001


TO:      Regulatory News Service
         The London Stock Exchange

RE:      CHAPTER 16 PARAGRAPH 13 OF
         CONTINUING OBLIGATIONS



Diageo plc (the 'Company') announces that today the directors named below were
granted the following options over the Company's ordinary shares of 28 101/108
pence ('Ordinary Shares') under the Company's Senior Executive Share Option
Plan:

Name of Director                   No of Ordinary Shares
N C Rose                           234,716
P S Walsh                          409,389

Each option was granted at a price of £6.87 per Ordinary Share and is
exercisable between 12 September 2004 and 11 September 2011, subject to
satisfaction of performance criteria.

In addition to the above, these directors' interests in the Company's Ordinary
Shares (excluding options, awards under the Company's LTIPs and also interests
as potential beneficiaries of the Diageo plc QUEST, the Grand Metropolitan
No.2 Employee Share Trust, the Diageo Employee Benefit Trust and, in the case
of Mr Walsh only, the Pillsbury 401(K) Savings Plan), are as follows:

Name of Director                   No of Ordinary Shares
N C Rose                           50,596
P S Walsh                          341,527*

* Including 4,932 Ordinary Shares held in the form of American Depositary
Shares.




12 September 2001