Directors' Dealings

Diageo PLC
10 December 1999

     
RE:  CHAPTER 16 PARAGRAPH 13
     CONTINUING OBLIGATIONS

Diageo  plc  (the 'Company') announces that  it  received
notification  on  10 December 1999 for  the  purposes  of
Section 329 of the Companies Act 1985 that the trustee of
the Diageo plc QUEST (the 'Trust') has transferred 76,590
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  10  December  1999  in
   relation to the Trust.
   
    Date of         No. of Ordinary       Range of
  Transaction     Shares Transferred   Option Prices
                                        of Ordinary
                                           Shares
    06.12.99          62,506            £3.14-£4.56
    07.12.99          14,084            £3.54-£4.645
                                              

The  total  holding of the Trust now amounts to 7,201,175
Ordinary Shares.

The  Company  further announces that Mr J  B  McGrath,  a
director, notified the Company on 9 December 1999 that on
that  date  he  exercised  options  over  81,255  of  the
Company's  Ordinary Shares granted to him on 10  December
1992  at a price of £4.23 per Ordinary Share.  Mr McGrath
subsequently sold 68,255 of the Ordinary Shares as  shown
below  and  transferred  7,500  Ordinary  Shares  to  his
spouse, Mrs S M McGrath.

   Date of        Number of        Price per
     Sale      Ordinary Shares     Ordinary
                    Sold             Share
   09.12.99        65,000            £5.27
   09.12.99         3,255            £5.24

As   a   result  of  these  transactions,  Mr   McGrath's
beneficial  interests  in the Company's  Ordinary  Shares
(excluding options, awards under the Company's LTIPs  and
also  interests as a potential beneficiary of  the  Grand
Metropolitan  No.  2  Employee Share  Trust,  the  Diageo
Employee  Benefit Trust and the Diageo  plc  QUEST)  have
increased  to 41,382 (of which 2,500 are held as  a  non-
beneficial interest).