Statement re Press Comment

Diageo PLC
18 August 2000


      DIAGEO AND PERNOD TO CO-BID FOR SEAGRAM'S WINE AND SPIRITS BUSINESS
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'The Directors of Diageo have noted recent press speculation concerning
Diageo's possible participation in the sale of Seagram's spirits and wine
division.

Diageo and Pernod Ricard announce that they have agreed to work together to
make an offer for Seagram's wine and spirits business in the forthcoming
disposal process.

Diageo does not anticipate making any further announcement until the outcome
of its interest in the process is determined.'

Investor enquiries        Catherine James           [phone]

Media enquiries           Kathryn Partridge         [phone]