Re Agreement

Diageo PLC
24 May 2002


                                                                     24 May 2002

               DIAGEO / BROWN-FORMAN DISTRIBUTION ARRANGEMENTS IN
                                 GREAT BRITAIN

Today, Diageo has been advised that it is Brown-Forman's intention to end the
company's agreement to market and distribute Brown-Forman brands in Great
Britain from August 1st 2002.

Diageo has distributed the Brown-Forman brands, which include Jack Daniels,
Southern Comfort and Woodford Reserve for the past 15 years. In the year to 30th
June 2001 these brands contributed approximately £12m of contribution after
marketing.

On the 21st December Diageo successfully closed the Seagram transaction adding
brands to its portfolio such as Captain Morgan and Bulleit whiskey which enable
Diageo to compete on similar consumer occasions in the GB market.

                                    -ends -


For further information

Media enquiries to      Isabelle Thomas          + 00 44 (0) 20 7927 5967

                        [e-mail]

Investor enquiries      Rachel Kentleton           + 00 44 (0) 20 7927 4911

                        [e-mail]


Notes to editor:

Diageo is the world's leading premium drinks business with an unrivalled
collection of brands including Johnnie Walker, Guinness, Smirnoff, J&B, Baileys,
Cuervo, Tanqueray and Captain Morgan.

Diageo is a global company, trading in over 180 markets around the world. The
company is listed both on the London Stock Exchange (DGE) and on the New York
Stock Exchange (DEO). For more information about Diageo, its brands, people and
performance, visit us at www.diageo.com.



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