IKON Subsidiary Prices $852 Million Lease-Backed Notes Series 2003-1

Press release from the issuing company

VALLEY FORGE, Pa.--April 16, 2003-- IKON Office Solutions, Inc. today announced that IKON Receivables Funding, LLC will issue, on or about April 23, 2003, approximately $852 million of equipment lease-backed notes. IOS Capital LLC, a subsidiary of IKON Office Solutions, will act as Servicer. IKON Receivables Funding is a wholly owned subsidiary of IOS Capital. The four classes of lease-backed notes are rated P-1/A-1+ and Aaa/AAA by Moody's Investor Service and Standard & Poor's, respectively. The notes are backed by lease contracts on copiers and other office equipment. The notes are insured by AMBAC Assurance Corporation. Lehman Brothers and JPMorgan were the joint lead managers on the sale, with Banc of America Securities LLC, Deutsche Bank Securities and PNC Capital Markets acting as co-managers. The weighted average interest rate on this transaction is 2.58%. A registration statement related to these securities was filed and declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. "The asset-backed market continues to serve as our primary source of funding for our leasing operations," stated William S. Urkiel, Senior Vice President and Chief Financial Officer of IKON, "With 78 percent of IKON's equipment revenues in the U.S. financed through IOS Capital, our ability to access the asset-backed market at favorable terms contributes to the consistent returns we experience in our leasing business." IKON accounts for the asset-backed notes as borrowings, with the debt and related assets reflected on the Company's balance sheet. Finance income related to the pledged lease receivables is recognized over the life of the underlying lease contracts. Asset-backed debt is generally retired with inflows from the related lease receivables. IKON and IOS Capital are parties to a support agreement that requires IOS Capital to maintain a debt to equity ratio not in excess of six to one.