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Danka Announces Agreement With Banks On Principal Terms Of New Financing

Press release from the issuing company

St. Petersburg, FL, June 8, 2001 - Danka Business Systems PLC (Nasdaq: DANKY) today announced that it has reached an agreement with the Steering Committee of its existing consortium of banks on the principal terms of a new Credit Facility which will consist of revolver, term loan and letter of credit commitments. The Credit Facility is subject to approval by 100% of the Company's existing banks, finalization of definitive documentation, the completion of the sale of Danka Services International (DSI), and the tender of the requisite amount of notes under the Company's exchange offer for its outstanding 6.75% convertible subordinated notes due April 1, 2002. The new Credit Facility will mature on the earlier of the third anniversary of its closing or the date which is one day in advance of the maturity of the senior subordinated notes being offered pursuant to the exchange offer, which is expected to be March 31, 2004. Danka's Chief Executive Officer, Lang Lowrey, commented, "We are pleased that our banks have so strongly endorsed the ongoing restructuring and operating efforts of the Company. This new facility will provide the necessary financing for the Company's strategic initiatives and will allow Danka to emerge from the difficult credit environment it has been operating under during the past two and a half years. Debt reduction continues to be a principal focus of the Company and we will continue to review all opportunities for additional debt reduction." The full bank group will meet on June 13, 2001 to discuss approval of the Credit Facility and the Company expects that the new Credit Facility will be executed by all parties by the end of June.