TO:      Regulatory Information Service                                    
                                                                           
         PR Newswire                                                       
                                                                           
RE:      Paragraph 3.1.4 of the Disclosure and Transparency Rules          

The notification listed below was received under Paragraph 3.1.2 of the
Disclosure and Transparency Rules.

Diageo plc (the "Company") announces that it received notification on 22
December 2009 that Paul Walsh, a director, exercised an option on 22 December
2009 over 93,281 ordinary shares of 28 101/108 pence each in the Company
("Ordinary Shares") granted on 11 October 2004 at a price per share of £7.07
under the Company's Senior Executive Share Option Plan.

Mr Walsh subsequently sold 92,281 Ordinary Shares on 22 December, at a price
per share of £10.70. Mr Walsh retains the balance of 1,000 Ordinary Shares.

As a result of the above transaction the interests of Mr Walsh in the Company's
Ordinary Shares (excluding options, awards under the Company's LTIPs and
interests as a potential beneficiary of the Company's Employee Benefit Trusts)
has increased to 725,308.

P D Tunnacliffe

Company Secretary

23 December 2009