ST. PETERSBURG, FL., February 20, 2001 - Danka Business Systems PLC ("Danka" or the "Company") today announced a comprehensive plan, consisting of three parts, to reduce and refinance its indebtedness: (1) the sale of Danka's outsourcing division, Danka Services International ("DSI"), (2) an exchange offer for all $200 million of Danka's outstanding 6.75% convertible subordinated notes due April 1, 2002 (CUSIP Nos. G2652NAA7, 236277AA7, and 236277AB5), (3) and the refinancing of Danka's existing senior credit facility. Danka is currently holding discussions with a select number of parties who have expressed an interest in acquiring DSI. The Company anticipates that it will close the sale of DSI during its next fiscal quarter. Danka will be required to obtain shareholder approval for the sale of DSI. Proceeds from the sale of DSI will be used primarily to repay a substantial portion Danka's existing bank debt. DSI, which is headquartered in Rochester, N.Y., has over 3,000 employees and operations in 13 countries throughout North America and Europe. Danka's existing credit facility, which had a balance of approximately $551.3 million as of December 31, 2000, matures in March 2002. Danka and its advisors are currently meeting with a number of lenders to discuss the terms of a new credit facility. Under the Company's refinancing plan, the new credit facility, along with the proceeds from the sale of DSI, will be used to repay the existing bank debt in full. Danka plans to have commitments for a new credit facility in place during its next fiscal quarter. Danka today announced the details of an exchange offer for its existing $200 million 6.75% convertible subordinated notes (the "old notes"). Under the exchange offer, holders can choose to exchange old notes for cash, new 9% senior subordinated notes due 2004 (the "new 9% notes"), new 10% subordinated notes due 2008 (the "new 10% notes" and, together with the new 9% notes, the "new notes") or a combination of these three options.