Diageo reopens bond

Diageo PLC
06 December 2006

                                                                 6 December 2006

DIAGEO REOPENS 2012 USD 300 MILLION FIXED RATE BOND

Diageo today reopened its US dollar 300 million long 5-year SEC registered
global bonds, due on 30 January 2012 with a coupon of 5.125%. The bonds were
originally issued on 28 September 2006 by Diageo Capital plc, with payment of
principal and interest fully guaranteed by Diageo plc.

Today Diageo launched and priced an additional USD 300 million of 5.125% Notes
due 2012 with the same terms (other than price to public and issue date), which
will trade freely with the original bond. Goldman Sachs was sole bookrunner for
the reopening.  The aggregate principal amount of 5.125% Notes due 2012
outstanding following the reopening is USD 600 million.

Proceeds from this issuance will be used to partly refinance $500 million
aggregate principal amount of notes bearing interest at 3.00% issued by Diageo
Finance B.V. in 2003 maturing on December 15, 2006.

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. 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-

For further information:

Investor enquiries         Darren Jones                     [phone]
                           [e-mail]

Media enquiries            Jennifer Crowl                   [phone]
                           [e-mail]

Notes for Editor:

The original USD 300 million global bond priced at a spread of 74 basis points
above the yield for the 5-year U.S. Treasury Note due August 2011.

The reopening for the additional USD 300 million has priced at a spread of 70
basis points above the yield for the 5-year U.S. Treasury Note due November
2011.

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
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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