Directors' Dealings

Diageo PLC
15 December 1999

     
RE:  CHAPTER 16 PARAGRAPH 13
     OF CONTINUING OBLIGATIONS


Diageo  plc (the 'Company') announces that on 14 December
1999  Mr  P S Walsh, a director, notified the Company  of
his  interest  in  the Company's ordinary  shares  of  28
101/108  pence  ('Ordinary Shares')  resulting  from  his
directions  to  American Express  Trust,  acting  as  the
trustee  of  the  Pillsbury  401(K)  Savings  Plan   (the
'Plan'), to invest part of his account balance under this
retirement plan as follows:-


1. On  7  December  1999, 2,733.673 units in  the  Diageo
   American   Depositary   Share   Fund   (the    'Fund')
   (representing   1,002  American   Depositary   Shares,
   ('ADS's') which themselves represented 4,008  Ordinary
   Shares) were credited to Mr Walsh's account under  the
   Plan.
   
2  On    8   December   1999,   633.913   further   units
   (representing  231 ADS's which themselves  represented
   924  Ordinary  Shares)  were credited  to  Mr  Walsh's
   account under the Plan.
   

One  ADS  is  equivalent to four Ordinary Shares  of  the
Company.

The  units  were credited at unit prices of  $13.352  and
$13.193  per unit respectively, representing the  closing
net asset value of the Fund on 7 and 8 December 1999.

As a member of the Plan whose account is invested through
the  Fund, Mr Walsh has an interest in the entire holding
of  the Plan in Diageo ADS's notwithstanding that only  a
small  proportion of the Plan's holding in  the  Fund  is
allocated  to his account.  On both the 7 and 8  December
1999  the  Trustee  of the Plan held, through  the  Fund,
977,726 ADS's representing 3,910,904 Ordinary Shares.

The  Company further announces that Mr Walsh became aware
of  and notified the Company on 15 December 1999, that he
had  acquired  121 ADS's, at a price of $37.317  per  ADS
(representing  484  Ordinary  Shares)  pursuant   to   an
election for dividend reinvestment under the Company's US
Employee Stock Purchase Plan.

As  a result of these transactions, Mr Walsh's beneficial
interests  in  the  Company's Ordinary Shares  (excluding
options,  awards made under the Company's LTIPs and  also
interests  as  a  potential  beneficiary  of  the  Diageo
Employee  Benefit Trust, the Diageo plc QUEST, the  Grand
Metropolitan No. 2 Employee Share Trust and the Pillsbury
401(K) Savings Plan) have increased to 103,968, including
53,480 Ordinary Shares held in the form of ADS's.