Diageo new joint ventures

Diageo PLC
07 March 2008

                                         EMBARGOED UNTIL 07:00 GMT 7 MARCH 2008


  Diageo, Heineken and Namibia Breweries announce new joint ventures in South
                                     Africa


Diageo plc ('Diageo'), Heineken International BV ('Heineken') and Namibia
Breweries Limited ('NBL') have today announced that they have reached agreement
to form a new joint venture for their combined beer, cider and RTD businesses in
South Africa, to be called DHN Drinks (Pty) Limited ('DHN Drinks'). The new
joint venture builds on the success of brandhouse Beverages (Pty) Limited ('
brandhouse'), the parties' current cost-sharing joint venture in South Africa
which was formed in July 2004.

Diageo and Heineken will each own 42.25% of DHN Drinks and NBL will own 15.5%.
Each party will share in the profits of DHN Drinks in proportion to their
shareholding.  brandhouse will continue to market and distribute the parties'
products in South Africa.

In addition, Diageo and Heineken will enter into a second new joint venture in
South Africa ('Supplyco'). Supplyco will construct a brewery and bottling plant
in Gauteng province, South Africa, and will produce Amstel and certain other key
brands.  Heineken will own 75% and Diageo will own 25% of Supplyco.

In the first two years Diageo will invest  £100 million in DHN Drinks and
Supplyco. The investment meets Diageo's return criteria.

The transaction, which is subject to regulatory approval, is expected to
complete on 31 March 2008.



Nick Blazquez, Managing Director of Diageo Africa said:

'The decision by Diageo, Heineken and Namibia Breweries to commit to a closer
relationship in South Africa reflects the success of brandhouse and acknowledges
the changing nature of the beverage alcohol market in South Africa.  We have
already demonstrated that a combined beverage alcohol distribution company can
capitalise on the growth opportunities in markets such as South Africa and the
new structure will enable us to realise further growth opportunities as a result
of the strong platform we will create together.'

                                    - more -


Tom de Man, Heineken's Regional President Africa and the Middle East, commented:

'With Africa now Heineken's fastest growing region, with the Heineken brand
growing 70% in South Africa and Amstel very clearly still a favourite with South
African consumers, there is no better time to invest in growth.  Our three
businesses already have a strong, successful partnership and I am excited about
the new opportunities that the combination of our brands and local brewing will
create.'



Sven Thieme, NBL's chairman said:

'Following the successful establishment of brandhouse in 2004, we have as a next
step put our brands together so as to maximise the mutual benefits of a joint
portfolio of premium products.  For us this investment means that NBL now has a
tangible commercial interest in the sales and distribution of all brands that
are part of this new profit sharing venture.'



                                    - ENDS -

For further information:

Investor relations:
Sarah Paul
[phone]
[e-mail]

Media relations:
Rachael Shaw
[phone]
[e-mail]

John Harrod
[phone]
[e-mail]





Analysts and Investors Presentation:

At 13.00 (GMT) on Friday 7 March, Stuart Fletcher, President Diageo
International, and Nick Blazquez, Managing Director Diageo Africa, will host a
conference call for analysts and investors.  To participate, please use the
following dial-in numbers below.

Presentation slides will accompany this announcement and will be available from
12.00 (GMT) on the home page of http://www.diageo.com.   The conference call
will be available on instant replay from 17:00 (GMT) until Monday 7 April using
the numbers below.



          Dial in details and contact information follow on next page

To participate in the call taking place on 7 March please use the following
dial-in numbers:


0800 279 9640               UK Toll free
1866 850 2201               USA Toll free
800 099 797                 Spain Toll free
0800 020 3462               Netherlands Toll free
1800 992 779                Ireland Toll free
0800 101 1919               Germany Toll free
0805 770 152                France Toll free



Please quote confirmation code:  2493072



To access the instant replay, the number to call is:

0800 559 3271               UK Toll free
1866 883 4489               US Toll free
[phone]         International



Please quote confirmation code:  2493072


Notes to editor:

About Diageo

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
London Stock Exchange (DGE) and the New York Stock Exchange (DEO).  For more
information about Diageo, its people, brands and performance, visit us at http:/
/www.diageo.com.


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