Directors' Dealings

DIAGEO PLC
9 July 1999

RE:   CHAPTER 16 PARAGRAPH 13 OF
      CONTINUING OBLIGATIONS
      
Diageo  plc  (the 'Company') announces that  it  received
notification on 8 July 1999 for the purposes  of  Section
329  of  the Companies Act 1985 that the trustee  of  the
Diageo plc QUEST (the 'Trust') has transferred 20,240  of
the   Company's  ordinary  shares  of  28  101/108  pence
('Ordinary  Shares') to participants  exercising  options
granted  under  the  Company's UK  Savings-Related  Stock
Option  Scheme and the Grand Metropolitan Savings-Related
Share Option Scheme (the 'Schemes').  The Ordinary Shares
were  transferred  by  Diageo QUEST Trustees  Limited  as
trustee of the Trust.  The Trust is a discretionary trust
for  the  benefit  of employees of the  Company  and  its
subsidiaries  which  operates  in  conjunction  with  the
Schemes  and  holds Ordinary Shares to  satisfy  existing
options granted under the Schemes.

1. Executive     directors    who    are    potential
   beneficiaries of the Trust are:
   
   A A Greener
   J M J Keenan
   D N Malamatinas
   J B McGrath
   N C Rose
   C A Storm
   P S Walsh
   
2. Transactions notified on 8 July 1999  in  relation
   to the Trust.

    Date of         No. of Ordinary       Range of
  Transaction     Shares Transferred   Option Prices
                                        of Ordinary
                                           Shares
                                       
     6.7.99           20,240           £3.14 - £4.645
                                       
The  total  holding of the Trust now amounts to 9,377,328
Ordinary Shares.