Diageo and Ketel One update

Diageo PLC
26 March 2008

                                                                   26 March 2008

             Proposed 50/50 company for Ketel One with Nolet update

The Federal Trade Commission (FTC) has made a request for additional information
under the U.S. Hart-Scott-Rodino Antitrust Improvements Act (HSR) in connection
with Diageo's agreement with the Nolet family to form a 50/50 company for the
sale and distribution of Ketel One vodka products.  The request, commonly
referred to as a 'second request', will extend the waiting period imposed by HSR
until, at the latest, 30 days after Diageo has substantially complied with the
second request.  Diageo will comply with the second request as expeditiously as
possible and will continue to cooperate fully with the FTC's review.

As previously announced, completion of the transaction requires regulatory
approval from the FTC. The waiting period can be extended voluntarily by the
parties or terminated sooner by the FTC.

No further announcement will be made until completion of the transaction.

                                     -ends-

For further information please contact

Investor Relations
Sarah Paul (UK)                             Kelly Padgett  (US)
[phone]                        [phone]
[e-mail]                       [e-mail]

Media Relations
Isabelle Thomas (UK)                        Rachel Rosenblatt (US)
[phone]                        [phone]
[e-mail]                  [e-mail]


Notes to Editor

Diageo is the world's leading premium drinks business.  With its global vision,
and local marketing focus, Diageo brings to consumers an outstanding collection
of beverage alcohol brands across the spirits, wine and beer categories
including Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, Captain
Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines.
Diageo trades in some 180 countries around the world and is listed on both the
New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more
information about Diageo, its people, brands and performance, visit us at
www.diageo.com




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