SOURCE: Diageo PLC

April 28, 2005 16:47 ET

Diageo PLC Announces Diageo launches and prices a $750m bond

London, UK -- (MARKET WIRE) -- April 28, 2005 --28 April 2005

Diageo launches and prices a $750m bond

Diageo, the world's leading premium drinks business, today launched and priced US dollar 750 million of 5-year SEC registered securities.

Due 3 May 2010, the issue pays a coupon of 4.375%. Barclays Capital and JP Morgan were joint bookrunners. Bank Of America, Credit Suisse First Boston, HSBC and Morgan Stanley were co-managers. Approximately $900 million of Diageo's current debt will mature between May and August 2005. Diageo viewed current market conditions as favourable and has taken advantage of them to pre-fund some of this maturing debt before it enters its closed period. Diageo's closed period commences in July and ends with the announcement of the preliminary results in September 2005.

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. No offer of securities is being and will be made to persons who are established, domiciled or have their residence ("are resident") in the Netherlands. 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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Diageo contacts:
Investor enquiries Kelly Padgett   +1 202 715 1110 investor.rel@diageo.com

Media enquiries    Isabelle Thomas +44 (0)20 7927 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 markets 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

This information is provided by RNS The company news service from the London Stock Exchange