Transaction in Own Shares

Diageo PLC
21 October 2004

Diageo plc announces that it has today purchased through Cazenove & Co. Ltd
2,500,000 ordinary shares at a price of 727.3356 pence per share. The purchased 
shares will all be held as treasury shares.

Following the above purchase, Diageo plc holds 2,500,000 ordinary shares as
treasury shares. The total number of ordinary shares in issue (excluding shares
held as treasury shares) is 3,047,511,833.

Notes to Editor:

Investor enquiries:
Catherine James                     [phone]
[e-mail]

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

The shareholders of Diageo plc in their Annual General Meeting of 20 October
2004 approved an amendment to Diageo's articles of association which allows
Diageo to hold repurchased ordinary shares as treasury shares. A full discussion
of this amendment and related resolutions can be found in the Notice of Annual
General Meeting which is available on Diageo's website, www.diageo.com


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