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:

1) it cancelled 30,000,000 ordinary shares of 28 101/108 pence each in the
Company ("Ordinary Shares") held in treasury.

2) it released from treasury 555 Ordinary Shares to satisfy grants made under
employee share plans. The average price at which these Ordinary Shares were
released from treasury was 1,013.80 pence per share.

Following this cancellation and release, the Company holds 248,186,071 Ordinary
Shares as treasury shares and the total number of Ordinary Shares in issue
(excluding shares held as treasury shares) is 2,521,491,188.

20 August 2008