SOURCE: Diageo PLC

October 25, 2005 17:49 ET

Diageo launches and prices a $750 million bond

London, UK -- (MARKET WIRE) -- October 25, 2005 --

                                                    25 October 2005



                Diageo launches and prices a $750 million bond

Diageo, the world's leading premium drinks business, today launched and priced US dollar 750 million of 10-year SEC registered securities.

Due 28 October 2015, the issue pays a coupon of 5.30%. Banc of America Securities LLC, HSBC and Morgan Stanley were joint bookrunners. Credit Suisse First Boston, Citigroup, Merrill Lynch & Co and RBS Greenwich Capital were co-managers. Proceeds from this issuance will be used for general corporate purposes including the repayment of short-term debt.

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. Securities are not, may not and will not be offered in the Netherlands other than to professional investors (professionele marktpartijen) as defined in the Dutch 1995 Securities Act Exemption Regulation (Vrijstellings sregeling Wet toezicht effectenverkeer 1995). 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-


Diageo contacts:

Investor enquiries:  Catherine James  +44 (0)207 927 5272
investor.rel@diageo.com


Media enquiries: Isabelle Thomas  +44 (0)207 927 5967  media@diageo.com

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 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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