Statement re. FTC rulings

Diageo PLC
23 October 2001





                                                               23 October 2001



                 Federal Trade Commission ruling on proposed
                    Pillsbury / General Mills combination,
                 and on Seagram wine and spirits acquisition







Diageo and General Mills are pleased by today's vote of the Federal Trade
Commission which resulted in no action being taken against the proposed
acquisition of Pillsbury by General Mills. The two companies are committed to
completing the acquisition of Pillsbury, and the divestiture to International
Multifoods Corporation (IMC) on the terms submitted to the FTC, as soon as
possible.

Separately, the FTC has challenged the acquisition of the Seagram wine and
spirits business from Vivendi Universal by Diageo and Pernod Ricard. However,
the FTC, Diageo and Pernod Ricard have agreed to further discussions in an
effort to reach a settlement.

Commenting Paul Walsh, Chief Executive of Diageo plc, said:

'When we announced the plan to combine Pillsbury with General Mills we made
clear our belief that this move represented an excellent future for Pillsbury.
It also represents a major step in Diageo's strategy of focusing on its
premium drinks business.

'On the Seagram transaction, we are encouraged by the FTC's willingness to
have further discussions which we will pursue over the next few weeks.'



                                    -ENDS-

                           For further information:

Media enquiries to      Kathryn Partridge     + 00 44 (0) 20 7927 5225/5967

[e-mail]

Investor enquiries to   Catherine James       + 00 44 (0) 20 7927 5272

[e-mail]


                        Kelly Padgett         + 00 (1) 202 715 1110

Notes to editor:

Diageo is the world's leading premium drinks business.  Formed in December
1997 by the merger of GrandMet and Guinness, Diageo has an unrivalled
portfolio of brands including Smirnoff, Johnnie Walker, Tanqueray, Guinness, J
&B, Baileys, Cuervo and Malibu

In a strategic move to drive organic growth, Diageo is realigning itself
behind its premium drinks business, Guinness UDV. To do this, Diageo is
exiting its food businesses--the quick service restaurant company Burger King
(announced June 2000) and its Pillsbury packaged food business (announced July
2000).

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.