ST. PETERSBURG, Fla.--Oct. 2, 2003-- Danka Business Systems PLC today announced that it has begun the final stage of Phase I of its Oracle 11i ERP system rollout in the U.S. As of the end of the Company's first fiscal quarter, about 50% of its U.S. business had been converted to the new system and by the end of the second quarter, approximately 73% of its U.S. business had been converted. This final stage will convert the remainder of the U.S. business to the new system. "The Company began the final stage of its rollout on September 27th," said Gene Hatcher, Danka's Chief Information Officer. "This project has been very expensive, time consuming and challenging; nevertheless, as we announced earlier, we expect to complete Phase I of our initial rollout across our U.S. business this fall." Danka's U.S. President and Chief Operating Officer, Todd Mavis added, "With the end of our Phase I Oracle implementation in sight, we will now be focused on realizing the operational and customer service benefits of the system, leveraging our investment, and reducing our costs. The savings will come from reduced spending related to implementation of the system, and reductions in expenditures related to maintaining multiple, disparate, outdated legacy IT systems and processes, which have been very manual and labor intensive. We are now looking at our entire U.S. organization in the context of our new operating systems and processes, and expect headcount reductions over the next two quarters." The Oracle ERP implementation represents the most significant part of the Company's reengineering project, called Vision 21, which was launched in Fiscal Year 2002 as part of the company's objective to deliver a world class customer experience.