Directors' Notification of Dealing in Shares

Diageo PLC
8 September 2000

                              
                      RE:    CHAPTER 16 PARAGRAPH 13 OF  
                                                         
                             CONTINUING OBLIGATIONS      
 
Diageo plc (the 'Company') announces the following: 

                                                                               
  1.    That awards over the Company's ordinary shares of 28 101/108 pence    
        ('Ordinary Shares') held under the Grand Metropolitan Restricted      
        Share Plan ('the Plan') were today released to the directors named    
        below. The awards were made on 24 March 1997 and vested on 23         
        February 2000 at a level of 56%. The balance of each award has        
        lapsed. In accordance with Rule 8 (c) of the Plan, the obligation in  
        respect of Mr P S Walsh has been satisfied by a payment in cash, as   
        required by the provisions of The Pillsbury Company's non-qualified   
        deferred compensation plan.                                           
        Name of Director                               No of Ordinary Shares  
        J M J Keenan                                   79,372                 
        J B McGrath                                    52,749                 
        N C Rose                                       10,948                 
        P S Walsh                                      96,276                 
 

                                                                              
  2.    That, in connection with the release of awards under the Plan set out 
        in paragraph 1 above, notification, as set out below, was today       
        received from Hill Street Trustees Limited as trustee of the Grand    
        Metropolitan PLC No 2 Employee Share Trust (the 'Employee Share       
        Trust') of a purchase and sale of the Company's Ordinary Shares. The  
        Employee Share Trust is a discretionary trust for the benefit of      
        employees of the Company and its subsidiaries and operates primarily  
        in conjunction with Grand Metropolitan PLC share schemes.             
 

                                                                              
  Date of Transaction    No of                No of Ordinary     Share Price  
                         Ordinary Shares      Shares Sold                     
                         Purchased                                            
                                                                              
  8.9.00                 284,877                                 £5.888568    
  8.9.00                                      96,276             £5.888568    
 

                                                                              
        The directors set out in paragraph 1 above are potential              
        beneficiaries of the Employee Share Trust. As a result of this        
        transaction, the Employee Share Trust's holding in the Company's      
        Ordinary Shares is 248,601.   
                                        
  3.    That Mr C A Storm, a director, notified the Company that he had today 
        called for, and subsequently sold, 9,442 Ordinary Shares which vested 
        on 21 March 2000 under the Company's Long Term Incentive Plan 1996    
        (formerly the Guinness Long Term Incentive Plan 1996) (the 'Incentive 
        Plan') at a call price of 0.001 pence per Ordinary Share. This number 
        represents 80% of the original number of Ordinary Shares granted on   
        21 March 1997 under the Incentive Plan and the balance has lapsed.    
        The Ordinary Shares were sold at a price of £5.88 per Ordinary Share. 

  4.    Receipt of notification today for the purposes of Section 329 of the  
        Companies Act 1985 that the trustee of the Diageo plc QUEST (the      
        'Trust') has transferred 15,687 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.    
                                                      
        Transactions notified on 8 September 2000 in relation to the Trust.   
                                                                              
  Date of Transaction    No. of Ordinary Shares        Range of Option Prices 
                         Transferred                   of Ordinary Shares     
  08.09.00               15,687                        £3.54 - £4.89          
 

                                                                              
        The total holding of the Trust now amounts to 5,590,756 Ordinary      
        Shares.         
                                                      
  5.    As a result of the above transactions the interests of the executive  
        directors in the Company's Ordinary Shares (excluding options, awards 
        under the Company's LTIPs and also interests as potential             
        beneficiaries of the Diageo plc QUEST, the Diageo plc Employee        
        Incentive Trusts 1994 and 1996, the Diageo Employee Benefit Trust,    
        the Grand Metropolitan No. 2 Employee Share Trust and the Pillsbury   
        401 (K) Savings Plan) are as follows:                                 
        Name of Director                               No of Ordinary Shares  
        J M J Keenan                                   250,896=            
        J B McGrath                                    95,782+                
        N C Rose                                       24,093                 
        C A Storm                                      86,696                 
        P S Walsh                                      107,132*               
        =All held in the forms of American Depositary Shares ('ADSs').      
        +Of which 2,500 are held as a non-beneficial interest                 
        *Including 7,548 Ordinary Shares held in the form of ADSs.            
        The previously notified beneficial shareholding of Mr P S Walsh       
        (notification dated 28 April 2000) was understated by 172 Ordinary    
        Shares and the figure given above has been amended accordingly.