Shareholdings

Diageo PLC
17 July 2000


                                                         
                       TO:    REGULATORY NEWS SERVICE    
                              LONDON STOCK EXCHANGE      
                       RE:    CHAPTER 9 PARAGRAPH 11 OF  
                              CONTINUING OBLIGATIONS     
                                                         
 
Diageo plc (the 'Company') announces that it received notification on 17 July
2000 for the purposes of Sections 198-208 of the Companies Act 1985 (the
'Act') that, following recent sales, Prudential plc is interested in
102,506,700 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 14 July 2000, Prudential plc no longer has
a notifiable interest in the Ordinary Shares of the Company. 

 
 
17 July 2000