SOURCE: Diageo PLC

March 27, 2006 18:12 ET

Diageo launches and prices a $400m floating rate note and $600m fixed rate bond

London, UK -- (MARKET WIRE) -- March 27, 2006 --27 March 2006

Diageo launches and prices a $400m floating rate note and $600m fixed rate bond

Diageo, the world's leading premium drinks business, today launched and priced US dollar 400 million of 3-year and US dollar 600 million of 7-year SEC registered securities. The bonds were issued by Diageo Finance B.V., with payment of principal and interest fully guaranteed by Diageo plc.

Due on 30 March 2009, the 3-year issue pays a coupon of 3 month US dollar LIBOR + 12 basis points. Due on 1 April 2013, the 7-year issue pays a coupon of 5.5%. Citigroup, Credit Suisse and RBS Greenwich Capital were joint bookrunners. Deutsche Bank Securities, Goldman Sachs & Co., JPMorgan and UBS Investment Bank 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.

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Note for Editors:

The 3-year issue pays a floating rate coupon based on the 3-month US dollar LIBOR rate. For indicative purposes only, at 11am London time on 27 March 2006, the 3-month US dollar LIBOR rate was 4.96%. The actual rate used to set the coupon on the 3-year issue, which will be determined in the future, cannot be predicted now and may vary from this figure.

The 7-year issue is priced at a spread of 80 basis points above the yield for the 7-year U.S. Treasury Note due February 2013.

Diageo contacts:
Investor enquiries     Catherine James         +44 (0) 20 7927 5272
                       Investor.rel@diageo.com

media enquiries        Isabelle Thomas         +44 (0) 20 7927 5967
                       media@diageo.com

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