Directors' Dealings

Diageo PLC
11 February 2000

RE:  CHAPTER 16 PARAGRAPH 13
     CONTINUING OBLIGATIONS

Diageo  plc  (the  'Company') announces that it received  notification  on  11
February  2000 for the purposes of Section 329 of the Companies Act 1985  that
the  trustee of the Diageo plc QUEST (the 'Trust') has transferred  70,845  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  11  February  2000   in
   relation to the Trust.
   
    Date of         No. of Ordinary    Range of Option
  Transaction     Shares Transferred      Prices of
                                       Ordinary Shares
                                       
    11.02.00          70,845             £3.53-£4.47

The total holding of the Trust now amounts to 6,701,557 Ordinary Shares.