SOURCE: Diageo PLC

October 23, 2007 17:13 ET

Diageo PLC announces Bond Issue

London, UK--(Marketwire - October 23, 2007) -

                                                                 23 October 2007

Diageo launches and prices two tranches of fixed rate bonds

Diageo today launched and priced US dollar 500 million of long 5-year and US
dollar 1,000 million of 10-year SEC registered securities. The bonds were issued
by Diageo Capital plc, with payment of principal and interest fully guaranteed
by Diageo plc.

Due on 30 January 2013, the long 5-year issue pays a coupon of 5.20%. Due on 23
October 2017, the 10-year issue pays a coupon of 5.75%. Citi, Banc of America
Securities LLC and Morgan Stanley were joint book-running managers.  RBS
Greenwich Capital and HSBC were co-managers. Proceeds from this issuance will be
used for general corporate purposes.

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. 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-

Contacts

Investor enquiries
Sarah Paul
+44 (0) 20 7927 4326
investor.rel@diageo.com

Media enquiries
Isabelle Thomas
+44 (0) 20 8978 5967
media@diageo.com

Notes to Editor:

The long 5-year issue is priced at a spread of 117 basis points above the yield
for the 5-year US Treasury Note due September 2012.

The 10-year issue is priced at a spread of 137 basis points above the yield for
the 10-year US Treasury Note due August 2017.

About Diageo



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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