Re Agreement

Diageo PLC
29 July 2002



                  DIAGEO AND MOET HENNESSY ANNOUNCE AGREEMENT

              OF NEW U.S. DISTRIBUTOR RELATIONSHIPS IN FIVE STATES





Diageo, the world's leading premium drinks business, and Moet Hennessy, the
world's leading luxury wines and spirits group, announced today that Diageo and
Schieffelin & Somerset, a joint venture between Diageo and Moet-Hennessy, have
decided to consolidate their respective brands within single distributors in
five key U.S. states. The new arrangements will create a dedicated sales team in
each distributor for Diageo and Schieffelin & Somerset brands.

Consolidating with one distributor will lead to the development of world class
selling organizations and establish a platform for greater organic growth for
the brands and their customers in those states. Additionally, Schieffelin &
Somerset and Diageo will be able to work more closely with distributors to
promote the responsible consumption of their products.

Brands brought together include Smirnoff, Baileys, Captain Morgan, Cuervo, Crown
Royal, Seagram's 7 Crown, Beaulieu Vineyards and Sterling Vineyard Wines,
Johnnie Walker Scotch Whisky, Tanqueray, J&B, Moet & Chandon, Dom Perignon,
Hennessy, Domaine Chandon, Grand Marnier and Ruffino Wines.

Agreements have been signed in five states: California, Florida, Kentucky, New
York and Hawaii. Peerless Importers, Inc. and its upstate affiliate, Colony
Liquors and Wine Distributors, are selected as the preferred distributor in New
York State. Southern Wine & Spirits of America, Inc. is selected as the
preferred distributor in Florida, California, Hawaii and Kentucky. These five
states represent nearly 30 percent of the volume for the distilled spirits
industry in the U.S.



Media Contact:      Isabelle Thomas - Diageo London - [phone]

Investor Relations: Amanda Kramer   - Diageo London - [phone]

Kelly Padgett - Diageo US +01 202 715 1110




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