Directors' Notification of Dealing in Shares

Diageo PLC
16 May 2000


                      RE:     CHAPTER 16 PARAGRAPH 13    
                              CONTINUING OBLIGATIONS     
                                                                              
  Diageo plc (the 'Company') announces that it received notification on 15    
  May 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') pursuant to Deeds of Appointment dated 12 May     
  2000 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 transferred on 15 May 2000 
                                         at nil consideration, 1,834,109 of   
                                         the Company's ordinary shares of 28  
                                         101/108 pence ('Ordinary Shares') to 
                                         Hill Street Trustees Limited as      
                                         trustee of the Diageo No. 2          
                                         Employees' Benefit Trust and         
                                         6,089,479 Ordinary Shares to Hill    
                                         Street Trustees Limited as trustee   
                                         of the Diageo No. 3 Employees'       
                                         Benefit Trust.                       
  b)                                     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                            
  c)                                     As a result of this transfer of      
                                         7,923,588 Ordinary Shares the        
                                         Employee Benefit Trust's total       
                                         holding has been reduced to          
                                         8,076,412 Ordinary Shares.