Directors' Dealings

DIAGEO PLC
23 July 1999


RE:  CHAPTER 16 PARAGRAPH 13 OF
     CONTINUING OBLIGATIONS

Diageo  plc  (the 'Company') announces that  it  received
notification on 23 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 5,125  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:
   
   Sir Anthony Greener
   J M J Keenan
   D N Malamatinas
   J B McGrath
   N C Rose
   C A Storm
   P S Walsh
   
2. Transactions notified on 23 July 1999 in  relation
   to the Trust.
   
    Date of         No. of Ordinary       Range of
  Transaction     Shares Transferred   Option Prices
                                        of Ordinary
                                           Shares
                                       
    20.7.99            5,125            £3.53 - £4.56

The  total  holding of the Trust now amounts to 9,336,239
Ordinary Shares.

The Company further announces that Sir George Bull, a non-
executive  director, notified the Company today  that  he
received notification on 22 July 1999 from the trustee of
Hennessy  Settled Funds, in which he has a non-beneficial
interest,  that the trust had sold 4,301 Ordinary  Shares
on 7 July 1999 at a price of £6.95 per Ordinary Share.

As  a  result  of  this transaction,  Sir  George  Bull's
interests  in the Company's Ordinary Shares  (other  than
interests  as  a  potential  beneficiary  of  the   Grand
Metropolitan PLC No. 2 Employee Share Trust) have reduced
to  521,639  (430,827 held as a non-beneficial  interest)
and 114,955 held in the form of unvested awards under the
Grand Metropolitan Restricted Share Plan.