$400m FRN & $600m Bond Launch

Diageo PLC
28 March 2006


27 March 2006

Diageo launches and prices a $400m floating rate note and $600m fixed rate bond

Diageo, the world's leading premium drinks business, today launched and priced
US dollar 400 million of 3-year and US dollar 600 million of 7-year SEC
registered securities. The bonds were issued by Diageo Finance B.V., with
payment of principal and interest fully guaranteed by Diageo plc.

Due on 30 March 2009, the 3-year issue pays a coupon of 3 month US dollar LIBOR
+ 12 basis points. Due on 1 April 2013, the 7-year issue pays a coupon of 5.5%.
Citigroup, Credit Suisse and RBS Greenwich Capital were joint bookrunners.
Deutsche Bank Securities, Goldman Sachs & Co., JPMorgan and UBS Investment Bank
were co-managers. Proceeds from this issuance will be used for general corporate
purposes.

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy securities either in the United States or any other
jurisdiction, nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration and qualification under the securities laws of any such
jurisdiction. Any public offering of securities in the United States is being
made solely by means of a prospectus supplement to the prospectus included in
the Registration Statement filed by Diageo plc, Diageo Capital plc, Diageo
Finance B.V. and Diageo Investment Corporation and previously declared
effective.

                                     -ends-                                     

Note for Editors:

The 3-year issue pays a floating rate coupon based on the 3-month US dollar
LIBOR rate. For indicative purposes only, at 11am London time on 27 March 2006,
the 3-month US dollar LIBOR rate was 4.96%. The actual rate used to set the
coupon on the 3-year issue, which will be determined in the future, cannot be
predicted now and may vary from this figure.

The 7-year issue is priced at a spread of 80 basis points above the yield for
the 7-year U.S. Treasury Note due February 2013.

Diageo contacts:

Investor enquiries                Catherine James          [phone]
                                  [e-mail]

media enquiries                   Isabelle Thomas          [phone]
                                  [e-mail]


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