Interim Management Statement

Diageo PLC
16 October 2007


                                                                 16 October 2007


Interim management statement for the three months ended 30 September 2007

Diageo maintains full year guidance for 9% organic operating profit growth.

In the three month period ended 30 September 2007 Diageo's organic net sales
growth was 5%. However, the combined impact of two changes in the quarter has
reduced organic net sales growth by over one percentage point. Firstly, the
incremental net sales arising from price increases made in Venezuela to reflect
the movement in the parallel exchange rate are now excluded when calculating
organic net sales growth. In addition, as previously announced, the required
change in Diageo's route to market in Korea has also impacted organic net sales
growth. Diageo is now selling to a third party distributor at a net sales value
per case which is lower than last year as the distributor is responsible for the
marketing and distribution costs previously incurred directly by Diageo in
Korea. The anticipated full year operating profit impact of both these changes
was included in the fiscal 2008 organic operating profit growth guidance of 9%
which Diageo gave at the time of its 2007 preliminary results in August 2007.

There has been no material change in the financial position of the group during
the period. £283 million of share repurchases as part of the buy back programme
were the principal reason for the movement in net assets from £4.2 billion at 30
June 2007 to £4.1 billion at 30 September 2007.

Paul Walsh, Chief Executive of Diageo commented:

'At our results presentation in August I said that Diageo's strengths are the
quality and diversity of our brands, our routes to market and our global reach.
Trading since the beginning of the year has again demonstrated these strengths.
The second quarter is a key selling period for us and although we continue to
watch for any impact that recent financial market volatility may have on broader
trading conditions we are maintaining our guidance for 9% organic operating
profit growth for the current fiscal year.'


                                      ENDS


Explanatory notes

The introduction of the EU Transparency Directive in 2006 required companies
whose securities are admitted to trading on a regulated market in the EU to
issue interim management statements for financial years beginning after 20
January 2007. Diageo is therefore required to publish interim management
statements from the financial year beginning 1 July 2007. At the time of the
preliminary results on 30 August 2007 Diageo announced the following timetable
for issuing interim management statements:

          At the AGM on 16 October 2007
          At the interim results in February 2008
          In May 2008
          At the preliminary results in August 2008


For further information:

Investor enquiries : Investor relations + 44 (0) 20 7927 4267

Media enquiries:  Isabelle Thomas  + 44 (0) 20 7927 5967


Forward-looking statements

This document contains certain forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933 and Section 21E of the US
Securities Exchange Act of 1934. These forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. In particular, all statements that express forecasts, expectations and
projections with respect to future matters, including trends in results of
operations, margins, growth rates, overall market trends, the impact of interest
or exchange rates, the availability of financing to Diageo, anticipated cost
savings or synergies and the completion of Diageo's strategic transactions, are
forward-looking statements. By their nature, forward-looking statements involve
risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future. There are a number of factors that could cause
actual results and developments to differ materially from those expressed or
implied by these forward-looking statements, including factors that are outside
Diageo's control. All oral and written forward-looking statements made on or
after the date of this document and attributable to Diageo are expressly
qualified in their entirety by the 'risk factors' contained in Diageo's annual
report on Form 20-F for the year ended 30 June 2007 filed with the US Securities
and Exchange Commission (SEC). Any forward-looking statements made by or on
behalf of Diageo speak only as of the date they are made. Diageo does not
undertake to update forward-looking statements to reflect any changes in
Diageo's expectations or any changes in events, conditions or circumstances on
which any such statement is based. The reader should, however, consult any
additional disclosures that Diageo may make in documents it files with the SEC.
All readers, wherever based, should take note of these disclosures.


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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