Issue of Debt

Diageo PLC
10 December 2003



                                                                10 December 2003



                        DIAGEO LAUNCHES $500M BOND ISSUE

Diageo, the world's leading premium drinks business, today launched and priced
US dollar 500 million of 3-year SEC registered securities.

Due 15 December 2006, the issue pays a coupon of 3.00%. Barclays Capital and
Goldman Sachs were Joint Bookrunners. BNP Paribas, Bank of America, JP Morgan
Chase and Morgan Stanley were Co-Managers. Proceeds from the issue will be used
for general business purposes, including refinancing maturing debt.

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. No offer of securities is being and will be made to persons who
are established, domiciled or have their residence ('are resident') in the
Netherlands. Any offer of securities and each announcement thereof is being made
in compliance with, and any documents related thereto comply with, the laws and
regulations of each state where persons to whom such offer is made are resident.
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-


Investor enquiries     Catherine James      [phone]

                       Kelly Padgett        + 00 1 202 715 1110

                       [e-mail]

Media enquiries        Alison Woolven       + 44 (0) 20 7927 5966

                       [e-mail]

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, 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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