Directors' Notification of Dealing in Shares

Diageo PLC
28 March 2000



                      RE:     CHAPTER 16 PARAGRAPH 13    
                              CONTINUING OBLIGATIONS     
 
Diageo plc (the 'Company') announces that it received notification on 27
March 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). In
addition, that Mourant as trustee of the Employee Benefit Trust had purchased
500,000 Ordinary Shares. 
 

                                                                              
  2.     Transactions notified on 27 March 2000 in relation to the Employee   
         Benefit Trust                                                        
 

                                                                              
  Date            Date of      No of        Purchase    No of       Sale      
  Of              Put          Ordinary     Price of    Ordinary    Price     
  Each            Option       Shares       Ordinary    Shares      Of        
  Transaction     Contract     Purchased    Shares      Sold        Ordinary  
                                                                    Shares    
  24.03.00        31.03.99     500,000      £6.883      500,000     £6.053    
  24.03.00                     500,000      £4.44605                          
 

                                                                              
  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 amounts to 15,500,000 Ordinary Shares.         
 
 
 
 
 
28 March 2000