Share buy back programme

Diageo PLC
23 June 2005

                                                                    23 June 2005


Diageo establishes programme to enable the buy back of shares in up coming close
period


DIAGEO plc has put in place an irrevocable, non-discretionary programme allowing
the company to buy back shares during the close period which precedes the
preliminary results announcement on 1 September 2005.  This is the first time
that Diageo has established such a programme.

Share buy backs will be effected during the period between 24 June 2005 and 1
September 2005 within pre-set parameters. The buy backs will be in accordance
with Diageo's general authority to repurchase shares and in accordance with both
Chapter 15 of the current Listing Rules and Chapter 12 of the proposed new
Listing Rules that will come into effect on 1 July 2005. Consequently the
maximum price paid will be limited to no more than 105 per cent of the average
middle market closing price 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In announcing this Diageo confirms that currently it has no unpublished price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.  As in previous years Diageo will issue a statement in
respect of the year ending 30 June 2005 on 7 July and will announce preliminary
results for the year on 1 September 2005.   Diageo has noted that Moody's and
Standard and Poors have issued credit ratings in respect of a proposed
refinancing of Burger King Corporation (BKC) debt. Diageo holds $212.5 million
of subordinated loan in BKC and provides a guarantee in respect of $750 million
of senior debt and $100 million of revolving credit facilities.  Any refinancing
of BKC would lead to the termination of Diageo's guarantee and the repayment of
the subordinated loan together with accrued interest.


ENDS


Contacts:


Investor Relations: Michael Mulhall [phone]  [e-mail]

Media Enquiries:    Isabelle Thomas [phone]  [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 markets 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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