Directors' Notification of Dealing in Shares

Diageo PLC
3 August 2000


                      RE:    CHAPTER 16 PARAGRAPH 13 OF  
                                                         
                             CONTINUING OBLIGATIONS      
 
Diageo plc (the 'Company') announces that it received notification on 3
August 2000 for the purposes of Section 329 of the Companies Act 1985 that
the trustee of the Diageo plc QUEST (the 'Trust') has transferred 3,090 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: 
        J M J Keenan                                                          
        D N Malamatinas                                                       
        J B McGrath                                                           
        N C Rose                                                              
        C A Storm                                                             
        P S Walsh                                                             

  2.    Transactions notified on 3 August 2000 in relation to the Trust.      
 

  Date of Transaction    No. of Ordinary Shares        Range of Option Prices 
                         Transferred                   of Ordinary Shares     
  03.08.00               3,090                         £3.14 - £4.89          
 

The total holding of the Trust now amounts to 6,029,371 Ordinary Shares. 
 
The Company further announces that Mr. C A Storm, a director, notified the
Company on 3 August 2000 that on 2 August 2000, 1,839 of the Company's
Ordinary Shares were transferred into his name from various Company profit
sharing scheme trusts, the details of which transactions follow: 
 
     630 Ordinary Shares held in the name of A.G.S Employee Shares Nominees
Limited, appropriated under the Diageo UK Profit Sharing Share Scheme at a
price of £4.575 per Ordinary Share. 
 
     634 Ordinary Shares held in the name of A.G.S Employee Shares Nominees
Limited, appropriated under the Diageo UK Profit Sharing Share Scheme at a
price of £4.535 per Ordinary Share. 
 
     575 Ordinary Shares held in the name of Guinness Brewing (UK) 1996
Profit Sharing Scheme Limited, appropriated under the Guinness Brewing (UK)
1996 Profit Sharing Scheme at a price of £4.995 per Ordinary Share. 
As a result of these transactions, Mr. Storm's beneficial interests in the
Company's Ordinary Shares (excluding options, awards under the Company's
LTIPs and also interests as a potential beneficiary of the Diageo Employee
Benefit Trust, the Diageo plc QUEST and the Diageo Employee Incentive Trusts
1994 and 1996) remain unchanged at 86,696.