Transaction in Own Shares

Diageo PLC
16 December 2004


Diageo plc announces that it has today purchased through Cazenove & Co. Ltd
700,000 ordinary shares at a price of 737.8877 pence per share. The purchased
shares will all be held as treasury shares.

Following the above purchase, Diageo plc holds 35,805,000 ordinary shares
as treasury shares. The total number of ordinary shares in issue (excluding
shares held as treasury shares) is 3,013,877,128



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