Disposal

Diageo PLC
18 March 2002


18 March 2002

                         Diageo to sell Glen Ellen wine

Diageo today announces that it has reached an agreement for the sale of Glen
Ellen wines to Franzia Winery. The sale is subject to regulatory approval.

This transaction includes the Glen Ellen and MG Vallejo brands, the world-wide
trademark rights, and all the Glenn Ellen inventory. It does not include our
facilities or vineyards.

Glen Ellen was managed by Diageo's Chateau & Estates Wines Company, based in
Napa, California.

                                     -ends-

The Diageo Chateau & Estate Wines Company produces and markets the wines of
Sterling Vineyards, Beaulieu Vineyard, Blossom Hill, and The Monterey Vineyard.
The company is the exclusive US importer of Barton & Guestier wines and Sandeman
ports and sherries; and is the largest importer of classified Bordeaux in the
United States.

Diageo is the world's leading premium drinks business, with an unrivalled
collection of brands including Johnnie Walker, Guinness, Smirnoff, J&B, Baileys,
Cuervo, Tanqueray and Captain Morgan.

Diageo is a global company, trading in over 180 markets around the world. The
company is listed both on the London Stock Exchange (DGE) and on the New York
Stock Exchange (DEO). For more information about Diageo, our people, brands and
performance, visit us at www.diageo.com.


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