Disposal Agreement

DIAGEO PLC
29 September 1999


UDV SELLS CINZANO TO CAMPARI

United Distillers & Vintners (UDV), the spirits and wine business of
Diageo plc, today announced that it has reached a conditional agreement
to sell Cinzano to Campari. The consideration is not material in
relation to Diageo's net assets.

Cinzano is the number two brand in the global vermouth category and a
leading brand in the sparkling wine category, with total annual volumes
of approximately 4.5 million nine-litre cases.

UDV will retain its production facilities at Santa Vittoria in Italy
and San Juan in Argentina where it currently produces Cinzano and a
range of other brands. UDV will continue to produce Cinzano at Santa
Vittoria and at San Juan on behalf of Campari for an agreed period.

Further information:

Diageo/ UDV:
Catherine James        Investor Relations       [phone]
Luke Swanson/          Media Relations          [phone]
Clare Dimond