St. Petersburg, May 1, 2001 - Danka Business Systems PLC (NASDAQ: DANKY) (the "Company" or "Danka") today announced the extension of its pending exchange offer for all $200 million of its outstanding 6.75% convertible subordinated notes due April 1, 2002 (CUSIP Nos. G2652NAA7, 236277AA7, and 236277AB5). The expiration date for the exchange offer has been extended from 5:00 p.m., New York City time, on April 30, 2001 to 5:00 p.m., New York City time, on May 31, 2001, subject to satisfaction or waiver of certain conditions and unless extended. The Company said all other terms of the offer remain unchanged. The Company announced that as of 5:00 p.m., New York City time, on April 30, 2001, it had received tenders from holders of a total of $145,452,000 in aggregate principal amount of the 6.75% convertible subordinated notes, representing approximately 73% of the outstanding notes. Of the notes tendered pursuant to the exchange offer, $85,738,000 in principal amount has been tendered for the limited cash option, $815,000 in principal amount has been tendered for the new 9% note option, and $58,899,000 in principal amount has been tendered for the new 10% note option. Danka's Chief Executive Officer, Lang Lowrey, commented, "The bond exchange process is one of many facets of our financial restructuring plan. Typically, in like situations, this aspect of the process is completed in close coordination with the other parts of the overall transaction. In Danka's case, it will be important that we finalize commitments from our senior lenders and announce the closing date of the DSI sale before we expect to complete the exchange offer. We are very pleased with the progress we have made to date." The exchange offer is subject to certain conditions, including participation by holders of at least 95% of the 6.75% convertible subordinated notes, the refinancing of Danka's existing senior bank debt, and the sale of Danka's outsourcing division, Danka Services International ("DSI''). The Company anticipates that it will close the exchange offer, the refinancing of the senior bank debt, and the sale of DSI on or before June 30, 2001. The complete terms of the exchange offer are contained in the amended registration statement for the exchange offer filed on April 17, 2001. The limited cash option has been over-subscribed. Therefore, holders choosing the limited cash option should expect to receive new 9% notes for a portion of the notes that they tender for cash.