Directors' Dealings

Diageo PLC
2 February 2000


RE:  CHAPTER 16 PARAGRAPH 13
     CONTINUING OBLIGATIONS

Diageo  plc  (the 'Company') announces that  it  received
notification  on  2  February 2000 for  the  purposes  of
Section 329 of the Companies Act 1985 of transactions  by
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.  A  notification  that Mourant & Co  Trustees  Limited
    ('Mourant') as trustee of the Employee Benefit  Trust
    had  purchased and subsequently sold 500,000  of  the
    Company's   ordinary  shares  of  28  101/108   pence
    ('Ordinary   Shares')  pursuant  to  a   put   option
    contract  entered into by Mourant on the  date  given
    below  (notified to the London Stock  Exchange  on  8
    April 1999).

2.   Transactions notified on 2 February 2000 in relation
    to the Employee Benefit Trust

     Date         Date of   No of      Purchase  No of     Sale
     Of           Put       Ordinary   Price     Ordinary  Price
     Each         Option    Shares     of        Shares    Of
     Transaction  Contract  Purchased  Ordinary  Sold      Ordinary
                                       Shares              Shares
                               
     31.01.00     02.03.99  500,000    £6.9628   500,000   £6.1328

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 and remains
    at 14,500,000 Ordinary Shares.