US Litigation - Partial Summary Judgment

Diageo PLC
4 April 2000


Partial Summary Judgment received in US litigation between 
UDV North America, Inc. and Tequila Cuervo La Rojena, S.A. de C.V

Diageo today announced that partial summary judgment was granted yesterday
against UDV North America, Inc. in US litigation on the loss of control
provision in its distribution arrangements with Tequila Cuervo La Rojena, S.A.
de C.V.  The judgment will be appealed.  Litigation continues on other issues.

The loss of control issue arose from the merger of Grand Metropolitan plc and
Guinness plc that created Diageo in December 1997.

Current distribution arrangements remain in effect under a standstill
agreement during on-going negotiations toward a new distribution agreement.

Investor enquiries to:
Catherine James
020 7927 5272
[e-mail]

Media enquiries to:
Luke Swanson
020 7927 5301
[e-mail]