Holdings in Company

Diageo PLC
21 December 2000

                                
                      RE:    CHAPTER 9 PARAGRAPH 11 OF  
                             CONTINUING OBLIGATIONS      
 
Diageo plc (the 'Company') announces that it received notification on 20
December 2000 for the purposes of Section 198-208 of the Companies Act 1985
('the Act') that, following recent sales, Prudential plc is interested in
102,166,747 of the Company's ordinary shares of 28 101/108 pence ('Ordinary
Shares').

As the shareholding now represents 2.99% of the Company's issued share capital
as at close of business on 21 December 2000, Prudential plc no longer has a
notifiable interest in the Ordinary Shares of the Company.