Disposal by UDV

DIAGEO PLC
28 September 1999

                  UDV SELLS ASBACH AND METAXA TO BOLS

United Distillers & Vintners (UDV), the spirits and wine business of
Diageo plc, today announced that it will sell the Asbach and Metaxa
brands to Bols Royal Distilleries. The consideration is not material in
relation to Diageo's net assets. The transaction is subject to regulatory
approval.

Asbach is the premier brandy in Germany, with annual volumes of
approximately 500,000 nine-litre cases. The transaction includes UDV's
production facility in Rudesheim.

Metaxa is the world's number one selling Greek spirit, with annual
volumes of approximately 900,000 nine-litre cases. The transaction
includes UDV's production facility in Kifissia, just outside Athens.

Asbach and Metaxa will continue to be produced at Rudesheim and Kifissia
respectively.

Bols Royal Distilleries is an international spirits company headquartered
in the Netherlands. Bols's brands include the Dutch genever brands Bokma,
Hartevelt and Bols, and various international liqueur brands including
Bols Blue and the Bols liqueurs.


Further information:

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

Bols:
Alex Beek                Public Relations          + 31(0)79 330 5225