ST. PETERSBURG, Fla.--Oct. 22, 2001--Danka Business Systems PLC today announced that it has entered into an Agreement to sell certain assets of its New Zealand subsidiary, Danka New Zealand Limited, to Minolta New Zealand Limited ("Minolta''). Under the terms of the sale, Minolta will pay approximately $1.2 Million, for the assets, which will be offset by Danka's retention of certain trade payables. Danka will also retain certain accounts receivable. Danka will use the net proceeds of the sale to reduce debt under its newly executed Senior Bank Credit Facility. The sale is expected to close on or about November 2, 2001.
David Berg, Chief Operating Officer of Danka's Canada, Latin America and Asia Pacific Regions, stated: "This disposition is consistent with the Company's strategic mission to dispose of non-performing assets. Danka New Zealand is in the unenviable position of competing against the manufacturer of its products in New Zealand and was maintaining insufficient market share. The operation constituted a drain on the Company's Australian business, on which we will be able to devote more attention and focus to ensure its continued operational improvement. I am certain the business will prove much more strategic to Minolta than to Danka.''
Danka's Chief Executive Officer, Lang Lowrey, added: "The Company continues to divest itself of assets, like the New Zealand business, which have had a negative operational impact on the overall Company. It simply made no sense for Danka to remain in this market. We are pleased with the terms of this transaction and believe it will be a win for both Danka and Minolta, as well as for the customers. We will continue to evaluate all opportunities for further debt reduction and enhanced performance.''
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