ST. PETERSBURG, Fla.--June 1, 2001--Danka Business Systems PLC (Nasdaq: DANKY) (the "Company" or "Danka") today announced the extension of its 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 May 31, 2001, to 5:00 p.m., New York City time, on June 8, 2001, subject to satisfaction or waiver of certain conditions and unless extended. The Company said all other terms of the exchange offer remain unchanged. The Company announced that as of 5:00 p.m., New York City time, on May 31, 2001, it had received tenders from holders of a total of $156,369,000 in aggregate principal amount of the 6.75% convertible subordinated notes or approximately 78% of the outstanding notes. This represents an increase of $10,917,000 from the tender results previously announced on May 1, 2001. Of the notes tendered pursuant to the exchange offer, $87,173,000 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 $68,381,000 in principal amount has been tendered for the new 10% note option. 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 subsidiary, 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 May 16, 2001. Not all conditions to the exchange offer will be satisfied on or before June 8, 2001. The Company currently anticipates that it will extend the exchange offer beyond that date. 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. Banc of America Securities LLC is the exclusive dealer manager for the exchange offer. D.F. King & Co., Inc. is the information agent and HSBC Bank USA is the exchange agent. Additional information concerning the terms and conditions of the offer may be obtained by contacting Banc of America Securities LLC at (888) 292-0070.