Disposal

Diageo PLC
1 July 2001



                 Diageo plc agrees sale of Guinness World Records


Diageo plc announces that it has agreed to sell its Guinness World Records
business to Gullane Entertainment plc (Gullane) for £45.5 million in cash, to be
paid at completion. Completion is subject to approval by Gullane's shareholders
and is expected to take place in July.

Guinness World Records compiles, accredits and publishes information on world
records. It contributed around £2.0 million to Diageo's consolidated operating
profit in the year to 30 June 2000.

Announcing the sale, Nick Rose, Group Finance Director said:

'The sale of Guinness World Records underlines our commitment to focus on our
core business as the world's leading premium drinks company. We're confident
that Gullane will provide Guinness World Records with the right platform for its
further development and that this transaction offers a strong future for
Guinness World Records and its employees.'

Diageo was advised on the sale by Goldman Sachs International.

Media enquiries:              Kathryn Partridge             [phone]
Investor enquiries:           Catherine James               [phone]

Note to editors:

Goldman Sachs International, which is regulated in the UK by The Securities and
Futures Authority Limited, is advising Diageo plc in connection with the
disposal of Guinness World Records and no-one else and will not be responsible
to anyone other than Diageo plc for providing the protections afforded to
customers of Goldman Sachs International nor for providing advice in relation to
the disposal of Guinness World Records.

Diageo plc

Diageo is the world's leading premium drinks business. The company was formed in
December 1997 through the merger of Guinness and Grandmet. Diageo has an
outstanding portfolio of world famous consumer brands including Smirnoff,
Johnnie Walker, Guinness, Tanqueray, J&B, Baileys, Malibu and Cuervo. In its
premium drinks business, Diageo employs some 26,000 people across more than 200
markets world-wide. For more Information about Diageo (LSE: DGE, NYSE: DEO), our
businesses and brands, visit www.diageo.com.