St. Petersburg, April 11, 2001 - Danka Business Systems PLC (NASDAQ: DANKY) (the "Company" or "Danka") made an announcement today regarding 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 Company announced that as of 5:00 p.m., New York City time, on April 10, 2001, it had received tenders from holders of a total of $143,891,000 in aggregate principal amount of the 6.75% convertible subordinated notes, representing approximately 72% of the outstanding notes. Of the notes tendered pursuant to the exchange offer, $85,706,000 in principal amount has been tendered for the limited cash option, $806,000 in principal amount has been tendered for the new 9% note option, and $57,379,000 in principal amount has been tendered for new 10% note option. 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. The expiration date for the exchange offer is currently 5:00 p.m., New York City time, on April 30, 2001, subject to satisfaction or waiver of certain conditions, and unless extended. Danka's Chief Financial Officer, Mark Wolfinger, commented, "We are pleased with the excellent progress being made in our restructuring plan. The pending sale of Danka Services International ("DSI"), announced Monday, along with the support of our bondholders for the exchange offer, will greatly facilitate our efforts to complete a long-term refinancing of the Company." 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 DSI, Danka's outsourcing division. On April 9, 2001, the Company entered into a definitive agreement to sell DSI to Pitney Bowes Inc., a global provider of integrated mail and document management solutions, for $290 million in cash, subject to adjustment depending on DSI's net assets at closing. Completion of the proposed sale is contingent upon the approval of Danka's shareholders, senior lenders, and the satisfaction of other conditions customary to a transaction of this nature. The Company anticipates that it will close the exchange offer, complete the refinancing of senior bank debt and close the sale of DSI on or before June 30, 2001.