Disposals

DIAGEO PLC
29 September 1999


                            
EUROPEAN BRAND DISPOSALS

United Distillers & Vintners (UDV), the spirits and wine business
of Diageo plc, has now completed the auction process it initiated
in April 1999 to dispose of four European brands. The disposals of
Asbach, Cinzano, Metaxa and Vecchia Romagna have been agreed.

The net proceeds for the four brands are approximately £255
million. The brands have combined annual volumes of approximately
6.4 million nine-litre cases. In the year ended 30 June 1999,
contribution after marketing expenditure from these brands was £52
million. At 30 June 1999 net asset values were £240 million. Diageo
expects to record a pre-tax exceptional charge on disposal of £240
million after transaction costs, liabilities which have been
retained and £222 million of goodwill already written off.

'These disposals support UDV's strategy of focusing on our priority
brands and secure the long-term development of these four European
brands,' said Jack Keenan, UDV's Chief Executive.

UDV was advised by Warburg Dillon Read.


Further information:

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