Diageo Launches Bond

Diageo PLC
25 October 2005

                                                                 25 October 2005



                Diageo launches and prices a $750 million bond


Diageo, the world's leading premium drinks business, today launched and priced
US dollar 750 million of 10-year SEC registered securities.

Due 28 October 2015, the issue pays a coupon of 5.30%. Banc of America
Securities LLC, HSBC and Morgan Stanley were joint bookrunners. Credit Suisse
First Boston, Citigroup, Merrill Lynch & Co and RBS Greenwich Capital were
co-managers. Proceeds from this issuance will be used for general corporate
purposes including the repayment of short-term debt.

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. Securities are not, may not and will not be offered in the
Netherlands other than to professional investors (professionele marktpartijen)
as defined in the Dutch 1995 Securities Act Exemption Regulation (Vrijstellings
sregeling Wet toezicht effectenverkeer 1995). 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-


Diageo contacts:

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


Media enquiries: 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



                      This information is provided by RNS
            The company news service from the London Stock Exchange