ST. PETERSBURG, Fla.---June 29, 2001--Danka Business Systems PLC today announced the completion of the sale of Danka Services International to Pitney Bowes Inc. for $290 million in cash. The Company's shareholders approved the sale at an Extraordinary General Meeting conducted at 10:00 a.m. London time (5:00 a.m. EDT) this morning. The companies also entered into agreements for Danka to provide services and supplies to Pitney Bowes on a worldwide basis for an initial term of two years. Danka's Chief Executive Officer, Lang Lowrey, commented, "We are pleased to have closed the sale of DSI to Pitney Bowes Inc. We are particularly excited about the ongoing relationship our companies will have. Pitney Bowes has been, and will continue to be, an excellent customer of Danka and we have entered into an agreement in conjunction with the sale to continue providing services and supplies to the DSI accounts. We hope to grow and expand this relationship with Pitney Bowes.'' Lowrey added, "The sale of DSI was critical to the successful completion of the Company's refinancing initiatives. We will use the proceeds of this sale to substantially reduce the Company's senior debt. We believe that we emerge from these transactions with a much improved capital structure.'' The Company also announced the closing of the exchange offer for its 6.75% convertible subordinated notes. At 8:00 a.m. EST, the Company accepted tenders of $184,012,000 in principal amount (approximately 92%) of the outstanding notes. The Company will exchange the tendered notes for an aggregate of $24 million in cash, $47,593,600 in new zero coupon senior subordinated notes due April 1, 2004 and $64,520,000 in new 10% subordinated notes due April 1, 2008. In addition, the Company announced that it has entered into an agreement on a Senior Credit Facility with its bank lenders to provide the Company with financing through March 31, 2004. The facility amends and restates the Company's existing facility and required the consent and participation of 100% of the Company's existing lenders, and will consist of revolver, term loan and letters of credit commitments sufficient to meet the Company's operating requirements. Mr. Lowrey concluded, "The credit facility agreement and the conclusion of the exchange offer successfully complete the Company's refinancing plan. We are pleased that all of our banks, and an overwhelming majority of our bondholders and shareholders, have supported the Company's plan and have agreed to participate in Danka's future. I commend all of our constituents for their efforts in concluding these transactions. We will continue to seek additional ways to reduce the Company's remaining debt and improve its balance sheet. Nevertheless, the Company is now in a position to focus its efforts on executing its business plan, providing excellent products and services for its customers, and creating value for all of its constituents.''