Directors' Notification of Dealing in Shares

Diageo PLC
7 April 2000


RE: CHAPTER 16 PARAGRAPH 13
    CONTINUING OBLIGATIONS

Diageo plc (the 'Company') announces that it received notification on 7 April
2000 for the purposes of Section 329 of the Companies Act 1985 that the
trustee of the Diageo plc QUEST (the 'Trust') has transferred 17,528 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 7 April 2000 in relation to the 
                     Trust.                                                   
          Date of Transaction             No. of Ordinary    Range of Option  
                                              Shares            Prices of     
                                           Transferred       Ordinary Shares  
                07.04.00                           17,528     £3.53-£4.645    
 
The total holding of the Trust now amounts to 6,471,129 Ordinary Shares. 
 
The Company further announces that Sir George Bull, a non-executive director,
notified the Company today that he received notification on 7 April 2000 from
the trustee of the F F G Hennessy Settlements, in which he has a
non-beneficial interest, that the trust had sold 3,128 Ordinary Shares on 30
March 2000 at a price of £4.49 per Ordinary Share. 
 
As a result of this transaction, Sir George Bull's interests in the Company's
Ordinary Shares (excluding options, awards under the Company's LTIPs and also
interests as a potential beneficiary of the Grand Metropolitan No. 2 Employee
Share Trust) have reduced to 520,363 of which 427,699 are held as a
non-beneficial interest.