Transaction in Own Shares

TO:      Regulatory Information Service                                        
                                                                               
         PR Newswire                                                           
                                                                               
RE:      PARAGRAPH 12.6.4 OF THE LISTING RULES                                 

Diageo plc - Transaction in Own Shares

Diageo plc (the "Company") announces that today, it cancelled 2,500,000
ordinary shares of 28 101/108 pence each in the Company ("Ordinary Shares")
held in treasury.

Following this cancellation, the Company holds 278,336,509 Ordinary Shares as
treasury shares and the total number of Ordinary Shares in issue (excluding
shares held as treasury shares) is 2,567,450,178.

19 March 2008