Diageo launches & prices bond

Diageo PLC
15 May 2007

                                                                     15 May 2007



Diageo launches and prices a €750m bond issue



Diageo, the world's leading premium drinks business, today launched and priced a
€750 million, 5 year Eurobond under its European Debt Issuance Programme.  The
issuer of the bond is Diageo Finance plc, with payment of principal and interest
fully guaranteed by Diageo plc.



Due on 22 May 2012, the issue is in floating rate format and  linked to EURIBOR
with a spread to 3 month EURIBOR of 0.24%. Barclays Capital, Deutsche Bank and
JP Morgan Cazenove were joint bookrunners. Citi and Morgan Stanley were
co-managers. Proceeds from this issuance will be used for general corporate
purposes.



This press release is for information purposes only and does not constitute a
prospectus or offering memorandum or an offer or invitation to acquire any
securities and is not intended to provide the basis for any credit or any other
third party evaluation of any securities or any offering of them and should not
be considered as a recommendation that any investor should subscribe for or
purchase any securities. This press release shall not be deemed to constitute an
offer of or an invitation to purchase or subscribe for any securities.  This
press release does not constitute an offer to sell, exchange or transfer any
securities and is not soliciting an offer to purchase, exchange or transfer any
securities in any jurisdiction where such offer, sale, exchange or transfer is
not permitted or is unlawful.



Any investor who subsequently acquires any securities must rely solely on any
final prospectus published in connection with such securities, on the basis of
which alone purchases of or subscription for any securities may be made.



The securities have not been registered under the U.S. Securities Act of 1933,
as amended (the 'Securities Act'), and no securities shall be offered or sold in
the United States or to U.S. persons (as those terms are defined in Regulation S
under the Securities Act) unless an exemption from the registration requirements
of the Securities Act is available.





                                     -ends-



Diageo contacts:

Investor enquiries        Darren Jones              [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, Jose 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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