Disposal

Diageo PLC
8 May 2002

                                                                      7 May 2002


               THE COCA-COLA COMPANY TO ACQUIRE SEAGRAM'S MIXERS


Effective May 7, 2002, Diageo and Pernod Ricard have reached agreement with The
Coca-Cola Company for The Coca-Cola Company to acquire the Seagram's Mixers
business, including its well-known Ginger Ale, Tonic, Club Soda and Seltzer
lines. Completion of the transaction is subject to receipt of all required
regulatory approvals. The Coca-Cola Company will use the Seagram name as it
relates to Seagram's Mixers under licence from Pernod Ricard.



                                     -ends-

Notes to Editor

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, its brands, people and
performance, visit us at www.diageo.com.



For further information please contact


Rachel Kentleton               020 7927 4911          Investor Relations
[e-mail]

Kathryn Partridge             020 7927 5225           Corporate Communications
[e-mail]



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