Diageo Reopens Bonds

Diageo PLC
07 December 2007

                                                                 7 December 2007

               DIAGEO REOPENS 2013 AND 2017 USD FIXED RATE BONDS

Diageo today reopened its US dollar 500 million long 5-year and US dollar 1
billion 10-year SEC registered global bonds, due on 30 January 2013 with a
coupon of 5.20% and due 23 October 2017 with a coupon of 5.75% respectively. The
bonds were originally issued on 28 October 2007 by Diageo Capital plc, with
payment of principal and interest fully guaranteed by Diageo plc.

Today Diageo launched and priced an additional USD 250 million of the 5.20%
Notes due 2013 and an additional USD 250 million of the 5.75% Notes due 2017
with the same terms (other than price to public and issue date), which will
trade freely with the original bonds. Goldman, Sachs & Co and Morgan Stanley
were joint book-running managers for the reopening.  The aggregate principal
amount of the 2013 and 2017 Notes outstanding following the reopening is USD 750
million and USD 1,250 million respectively. Proceeds from this issuance will be
used for general corporate purposes.

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: Sarah Paul [phone] [e-mail]
Media enquiries: Jennifer Crowl [phone] [e-mail]

Note for Editors:

The original 2013 USD 500 million global bond priced at a spread of 117 basis
points above the yield for the 5-year U.S. Treasury Note due September 2012
(4.045% at time of pricing)

The reopening for the additional USD 250 million has priced at a spread of 165
basis points above the yield for the 5-year U.S. Treasury Note due November 2012
(3.511 at time of pricing).

The original 2017 USD 1,000 million global bond priced at a spread of 137 basis
points above the yield for the 10-year U.S. Treasury Note due August 2017
(4.395% at time of pricing)

The reopening for the additional USD 250 million has priced at a spread of 175
basis points above the yield for the 10-year U.S. Treasury Note due November
2017 (4.124 at time of pricing).


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