Directors' Notification of Dealing in Shares

Diageo PLC
14 April 2000


                      RE:     CHAPTER 16 PARAGRAPH 13    
                              CONTINUING OBLIGATIONS     
 
Diageo plc (the 'Company') announces that it received notification on 14
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 25,026 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 14 April 2000 in relation to    
                     the Trust.                                               
          Date of Transaction             No. of Ordinary    Range of Option  
                                              Shares            Prices of     
                                           Transferred       Ordinary Shares  
                14.04.00                           25,026     £3.53-£4.645    
 
The total holding of the Trust now amounts to 6,446,103 Ordinary Shares.