Directors' Notification of Dealing in Shares

Diageo PLC
26 May 2000

     
RE:  CHAPTER 16 PARAGRAPH 13
     CONTINUING OBLIGATIONS

Diageo  plc  (the  'Company')  announces  that  it  received
notification on 26 May 2000 for the purposes of Section  329
of the Companies Act 1985 that the trustee of the Diageo plc
QUEST  (the 'Trust') has transferred 55,580 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 26 May 2000  in  relation
   to the Trust.
   
    Date of         No. of Ordinary    Range of Option
  Transaction     Shares Transferred      Prices of
                                       Ordinary Shares
                                       
    26.05.00          55,580             £3.53-£4.89

The  total  holding  of the Trust now amounts  to  6,239,086
Ordinary Shares.