Directors' Notification of Dealing in Shares

Diageo PLC
4 July 2000


                      RE:     CHAPTER 16 PARAGRAPH 13    
                              CONTINUING OBLIGATIONS     
 
Diageo plc (the 'Company') announces that it received notification on 3 July
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. 
 
a)    A notification that Mourant & Co Trustees Limited ('Mourant') as
trustee of the Employee Benefit Trust had purchased 1,000,000 of the
Company's ordinary shares of 28 101/108 pence ('Ordinary Shares') pursuant to
put option contracts entered into by Mourant on the dates given below
(notified to the London Stock Exchange on 2 July 1999).  
                                                                              
b)    Transactions notified on 3 July 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    
  26.05.00        28.05.99     500,000      £6.46       -           -         
  30.06.00        30.06.99     500,000      £6.67       -           -         
 
                                                                              
c)    All executive directors are potential beneficiaries of the Employee   
      Benefit Trust:                                                        
                                                                              
        J B McGrath                                                           
        J M Keenan                                                            
        D N Malamatinas                                                       
        N C Rose                                                              
        C A Storm                                                             
        P S Walsh                                                             

d)    As a result of the above transactions the total holding of the        
      Employee Benefit Trust amounts to 9,076,412 Ordinary Shares.