Diageo and Kirin agree to form Joint Venture in Japan
New company aims to expand sales of Diageo premium brands including Guinness and Smirnoff Ice

Tokyo, April 6, 2009— Diageo plc (Diageo) and Kirin Brewery Co., Ltd. (Kirin) today announced an agreement to form a joint venture in Japan to expand distribution of Diageo products and contribute to the growth objectives of both companies.

The joint venture company, to be named Diageo Kirin Company, Limited, will be 51% owned by Diageo and 49% by Kirin, and is expected to begin operations in June, 2009.

Combining the capabilities and expertise of both companies, the new firm will develop the overall business strategy for Diageo premium brands to be sold by Kirin in Japan. It will also provide nationwide brand marketing support to both companies, and modern on-trade sales support in the Tokyo, Osaka and Nagoya metropolitan areas.

The Diageo premium brands to be sold by Kirin and distributed through Kirin's nationwide distributor network will include Guinness, Kilkenny and Smirnoff Ice, plus brands already handled by Kirin, namely Captain Morgan rum, Crown Royal, Gilbey's Gin, Gilbey's Vodka, Godiva, Myers's rum, Seagram's Seven Crown and Seagram VO.

Diageo noted that Kirin has a sophisticated distribution network that extends nationwide, and has a strong sales pedigree in the Japanese beer market. This provides an optimal platform from which to expand Diageo's premium beverage alcohol business in Japan.

Kirin said it will be aiming to increase demand and gain market share in the Japanese alcohol market, addressing the diversification of personal preferences within Japan's aging population. Kirin said boosting alcohol market share will make an important contribution to achievement of the Kirin Group's KV 2015 long-term vision calling for a quantum leap in growth.

About Diageo plc:

Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines, and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines. Diageo is a global company, trading in more than 180 markets around the world. The company 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 Diageo.com.

About Kirin Brewery Co., Ltd.:

Kirin Brewery Co., Ltd. is positioned at the core of the Kirin Group's domestic alcohol business and offers a diverse lineup of alcohol beverages and spirits, including the classic Kirin Lager Beer, first introduced nearly 120 years ago; Kirin Ichiban Shibori draft beer; happo-shu; "new genre" beverages and RTD; shochu; whisky and other spirits. The company pursues a customer-focused approach with due attention to changes in customer preferences, values and lifestyles. Kirin Brewery is listed on the Tokyo Stock Exchange (2503).