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Diageo PLC (DGE)

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Thursday 22 June, 2000

Diageo PLC

Preparation for Partial Flotation of Burger King

Diageo PLC
22 June 2000


Diageo,  the international food and drinks company, has announced  that  it 
is developing the option of a partial flotation of Burger King on the NYSE as
part of its commitment to maximising value for shareholders.

Dennis  Malamatinas, who is currently CEO of Burger King, has decided  that 
he wishes to spend more time in the United Kingdom and that this is an
appropriate time for him to leave Burger King.  Accordingly he has resigned
from the Diageo Board  with  effect  from  August  30th 2000. Diageo  has 
therefore  begun  an executive  search  to appoint a new world wide head of
Burger  King,  based  in Miami, who could lead a flotation of the company.

Until  the  new  Burger  King CEO is in place Colin  Storm,  currently  CEO 
of Guinness  plc  will be appointed CEO of Burger King. Stuart  Fletcher,  who
is currently Managing Director of Developing Markets for Guinness will assume 
the lead in the management of Guinness.

Commenting on this announcement John McGrath, Group CEO of Diageo, said:

As  part of our commitment to managing for value we have looked at a number of
strategic options for Burger King. We believe that a partial flotation of  the
company, which opens the possibilities of a demerger or a full flotation at  a
future  date, is the option we must now develop. We are therefore  taking  the
necessary  preparatory steps, the first of which is to provide the  management
continuity, which a successful flotation will require.

Colin  Storm has a remarkable depth of business experience and I am  confident
that  he  will  make  a significant contribution during this  transition.  His
recent  experience in successfully leading the programme of change  which  has
taken  place in Guinness is extremely relevant to the transformation programme
which Burger King is now rolling-out.

Stuart  Fletcher has been a key member of Colins team at Guinness and  is  the
right person to lead the team there as it continues to build Guinness as a key
value driver in Diageo.

Dennis Malamatinas leaves Diageo with our very best wishes for his future.  We
fully  understand his decision to spend more time in the UK and be  closer  to
his family.

Investor enquiries to:   Catherine James     +44 (0)20 7927 5272
                                             [email protected]

Media enquiries to:      Kathryn Partridge   +44 (0)20 7927 5225
                                             [email protected]

Note to editors:

Diageo plc

Diageo  is  one  of  the worlds leading consumer goods companies.   Formed  in
December  1997  through  the merger of GrandMet and Guinness,  Diageo  has  an
outstanding  portfolio  of  world  famous food  and  drinks  brands  including
Smirnoff,  Johnnie Walker, J&B, Gordons, Pillsbury, Haagen-Dazs, Guinness  and
Burger  King.  Diageo employs some 72,000 people across more than 200  markets
worldwide.    For  more  information  about  Diageo,  visit  our  website   at

Colin Storm

Colin  has  been  chief executive of Guinness since April  1998,  having  been
Managing  Director of Guinness Brewing International from 1990,  and  Managing
Director  of  the Guinness Ireland Group since 1992. Colin has been  with  the
company  since  1961  when  he  joined as an under-brewer.   His  career  path
progressed  through  the personnel route - Colin became Personnel  Manager  of
Guinness  Brewing GB in 1976, and of Guinness Brewing overall in 1984.   Colin
was born in June 1939.

Stuart Fletcher

Stuart  was  appointed Managing Director of Developing and  Seed  Markets  for
Guinness  in 1999.  Before this he was President of the companys Americas  and
Caribbean  region,  based in the US.  Stuart joined the business  in  1986  as
Deputy  Controller  of  the newly created Guinness Brewing  Worldwide  central
finance  function,  and  was  appointed Controller  in  1987.    In   1988  he
transferred to United Distillers Japan to take up the position of Finance  and
Operations Director.  His career in the UD business has included financial and
management posts throughout the Asia Pacific region.  He moved back to the  UK
in 1995 as Finance Director.  Stuart was born in August 1957.


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