Disposal by UDV

DIAGEO PLC
20 September 1999

                  UDV SELLS VECCHIA ROMAGNA TO MONTENEGRO

United Distillers & Vintners (UDV), the spirits and wine business of Diageo
plc, today announced that it will sell Vecchia Romagna to Montenegro. The
purchase price, which is not material to Diageo, is not disclosed.

Vecchia Romagna is the number one selling brandy in Italy and has annual
volumes of approximately 500,000 nine-litre cases. The transaction includes
UDV's production facility at San Lazzaro in Bologna, Italy, where Vecchia
Romagna will continue to be produced.

Based in Bologna, Montenegro is a privately owned spirits and food
producer, whose portfolio includes certain leading Italian brands.


Further information:
Diageo/ UDV:
Catherine James         Investor Relations     + 44 (0) 171 927 5272

Luke Swanson/           Media Relations        + 44 (0) 171 927 5715
 Clare Dimond
Montenegro:
Giancarlo Monetti       Chief Executive        + 00 39 051 617 0411/ 0511