Diageo to issue TradingUpdate

Diageo PLC
15 June 2006

                                                                    15 June 2006


Diageo to issue trading statement on 29 June 2006 and announces programme to
enable share buy back during closed period


Diageo will issue its annual trading statement on the 29 June 2006 with respect
to the fiscal year ending 30 June 2006.  The company also announces that it has
put in place a programme to enable the buy back of shares during the closed
period which begins 16 June 2006.

Diageo plc will issue a trading statement on the 29 June 2006 with respect to
the fiscal year ending 30 June 2006.  As a result, it will enter a closed period
which begins on 16 June and ends with the preliminary results announcement on 31
August 2006.  Diageo has put in place an irrevocable, non-discretionary
programme to allow the company to buy back shares during the closed period.  The
buy back programme during the closed period will be managed by an independent
third party, which will make its trading decisions in relation to the company's
securities independently of, and uninfluenced by, the company.

Share buy backs will be effected during the period between 16 June 2006 and 31
August 2006 within pre-set parameters.  The buy backs will be in accordance with
Diageo's general authority to repurchase shares and in accordance with Chapter
12 of the Listing Rules.  Consequently the maximum price paid will be limited to
no more than 105 per cent of the average middle market quotations of Diageo
shares for the 5 dealing days preceding the date of purchase.  The shares
repurchased will be held as Treasury shares.

In announcing this Diageo confirms that currently it has no unpublished price
sensitive information.
                                     -ends-

Contacts:

Investors Relations:            Sandra Moura              [phone]
[e-mail]

Media Enquiries:                Isabelle Thomas           [phone]
[e-mail]




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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