Disposal

Diageo PLC
22 May 2002

                                                                     22 May 2002

                        Diageo closes Malibu transaction

Diageo announces that it has successfully completed the sale of its Malibu
business to Allied Domecq. This follows approvals from the US Federal Trade
Commission, European and other regulatory authorities. The transaction was
announced on 27 February 2002.

                                     -ends-

For further information:

Media enquiries to      Isabelle Thomas          + 00 44 (0) 20 7927 5967

                        [e-mail]

Investor enquiries      Catherine James          + 00 44 (0) 20 7927 5272

                        [e-mail]


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.



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