AGM Statement

Diageo PLC
18 October 2005





                                                                 18 October 2005



Diageo AGM Statement: Guidance for the Current Year Unchanged.


Diageo will hold its AGM at 2.30pm today at The Queen Elizabeth ll Conference
Centre, Broad Sanctuary, Westminster, London SW1.  At the meeting Paul Walsh,
Chief Executive of Diageo, will make the following comments on the current
financial year:



'At our results presentation in September we reported top and bottom line
organic growth for the fifth consecutive year. On that occasion I said that we
expected to continue that trend and that top and bottom line growth in fiscal
2006 would be similar to that delivered in the year ended June 2005 when we
achieved 4% organic net sales growth and 7% organic operating profit growth.
Trading in the first quarter of the new financial year supports this guidance.



'In North America, our business continues to gain share in the growing spirits
category.  In Europe, as we anticipated the trading environment continues to be
difficult with volume down on the prior period and the decline in the ready to
drink segment continuing to adversely impact net sales growth.  In the
International region, volume growth remains strong and the markets, which we
identified as underperformers last year, Korea, Taiwan and Nigeria, are now
making progress in line with our expectations.



'The current oil price has led to higher costs for all consumer goods companies.
Diageo is not immune to this but our cost structure does reduce our exposure and
therefore we currently expect to contain these cost pressures within our overall
guidance.



'In addition if the recent strengthening of the US dollar were to be maintained
the negative impact in fiscal 2006 of the year on year movement in exchange
rates is estimated to be £45 million. This is a slight improvement from the  £50
million adverse movement we estimated in September but if current rates were
maintained we would expect a more substantial improvement in fiscal 07.



'Diageo is the world's leading premium drinks company and we are well positioned
to deliver our goal to consistently achieve our growth objectives.'



                                    - ENDS -











Contacts:



Investor Relations:


Catherine James [phone]  [e-mail]


Media Relations:


Isabelle Thomas [phone] [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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