Directors' Dealings

Diageo PLC
7 January 2000

     
RE:  CHAPTER 16 PARAGRAPH 13
     CONTINUING OBLIGATIONS

Diageo  plc  (the 'Company') announces that  it  received
notification  on  7  January 2000  for  the  purposes  of
Section 329 of the Companies Act 1985 that the trustee of
the Diageo plc QUEST (the 'Trust') has transferred 48,147
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  7  January   2000   in
   relation to the Trust.
   
    Date of         No. of Ordinary    Range of Option
  Transaction     Shares Transferred      Prices of
                                       Ordinary Shares
                                       
    05.01.00          48,147             £3.54-£3.59

The  total  holding of the Trust now amounts to 6,945,706
Ordinary Shares.

The  Company  further announces that it has received  two
notifications  from  the trustee of the  Diageo  Employee
Benefit  Trust (the 'Employee Benefit Trust') as detailed
below.  The  Employee Benefit Trust  is  a  discretionary
trust for the benefit of employees of the Company and its
subsidiaries  and operates primarily in conjunction  with
the Company's Long Term Incentive Plan ('LTIP'), approved
by shareholders on 11 August 1998.
    
1.    On  7  January 2000 a notification that the trustee
   had entered into contingent contracts pursuant to which
   it  may  be required to purchase up to 500,000 of  the
   Company's Ordinary Shares as detailed below.  The option
   contracts were entered into by Mourant & Co.  Trustees
   Limited ('Mourant') as trustee of the Employee Benefit
   Trust.
    
    
1.1 Transactions notified on 7 January 2000 in relation to
    the Employee Benefit Trust
    
    Date of    Number of       Premium paid  Purchase price
    Transacti  Ordinary        to            that would be
    on         Shares subject  Employee      payable if
               to conditional  Benefit       Ordinary
               option          Trust on      Shares are put
               contract        equity        pursuant to
                               Option        the option
                                             contract
                                             
    29.10.99   500,000         £159,862.50   £6.09
    
2.  On  7 January 2000 a notification for the purposes of
    Section  329  of the Companies Act 1985 that  Mourant
    had   purchased   and  subsequently  sold   1,000,000
    Ordinary  Shares  pursuant to  put  option  contracts
    entered  into  by Mourant on the dates  listed  below
    (notified  to the London Stock Exchange  on  8  April
    1999).

2. 1 Transactions notified on 7 January 2000 in relation
    to the Employee Benefit Trust

     Date     Date of   No of    Purchas  No of   Sale
     Of       Put       Ordinar  e        Ordinar Price
     Transac  Option    y        Price    y       of
     tion     Contract  Shares   of       Shares  Ordinar
                        Purchas  Ordinar  Sold    y
                        ed       y                Shares
                                 Shares           
                                 
     26.11.99  16.03.99  500,000  £7.0175  500,000 £6.1875
     
     24.12.99  24.02.99  500,000  £6.915   500,000 £6.085
     

3.  All executive directors are potential beneficiaries of
    the Employee Benefit Trust:
    
    Sir Anthony Greener
    J B McGrath
    J M Keenan
    D N Malamatinas
    N C Rose
    C A Storm
    P S Walsh
    
4.  As a result of the above transactions the total holding
    of the Employee Benefit Trust has not changed as a result
    of the above transactions and remains at 14,500,000
    Ordinary Shares.