A diffuser and exhaust system is provided for a turbine having an axial-radial diffuser and an exhaust hood including diffuser inner and outer flow guides that extend from an inlet to an outlet. The exhaust hood includes two throats or flow passages between the diffuser outlet and an exhaust hood side wall. The outer flow guide includes a recess, at one of the said two flow passages. The flow passage is positioned in relation to a point in the exhaust hood in the direction of the tangential flow velocity vector, where the point in the exhaust hood is farthest away from the exhaust hood outlet. The recess prevents a re-acceleration of the flow within the exhaust hood and affects an increase in the performance of the diffuser and exhaust hood system.