Directors' Notification of Dealing in Shares

Diageo PLC
7 September 2000


RE:
CHAPTER 16 PARAGRAPH 13 OF
CONTINUING OBLIGATIONS


Diageo plc (the 'Company') announces that it received notification on 7
September 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 500,000 of the Company's ordinary
shares of 28 101/108 pence ('Ordinary Shares') pursuant to a put option
contract entered into by Mourant on the date given below (notified to the
London Stock Exchange on 2 July 1999).

b) Transactions notified on 7 September 2000 in relation to the Employee
Benefit Trust

Date       Date of Put      No of     Purchase    No of              Sale
Of         Option Contract  Ordinary  Price of    Ordinary        Price of
Each                        Shares    Ordinary    Shares          Ordinary
Transaction                 Purchased Shares      Sold            Shares        

29.08.00    27.08.99        500,000    £6.425


c) All executive directors are potential beneficiaries of the Employee Benefit
Trust:

J B McGrath
J M Keenan
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 10,071,787 Ordinary Shares




7 September 2000