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Danka Announces Improvements to Senior Credit Facility

Press release from the issuing company

ST. PETERSBURG, Fla.--Oct. 25, 2004-- Danka Business Systems PLC today announced that it has entered into an agreement to amend and improve its Senior Revolving Credit Facility (the "Facility") with Fleet Capital Corporation. The agreement extends the term of the Commitments under the Facility to January 4, 2008, from July 1, 2006 and significantly increases Danka's borrowing capacity due to the parties' agreement to amend certain availability restrictions in the Facility. As of June 30, 2004, the Company had $14 Million in availability under the Facility. After consideration of the agreement, which relaxes certain borrowing and collateral restrictions, availability would have been $43 Million at June 30, 2004. The Company has not borrowed funds from the facility since its inception on July 1, 2003. "We are very pleased to announce this extension and improvement in our credit facility with Fleet Capital Corporation," commented Mark Wolfinger, Danka's Chief Financial Officer. "We believe this agreement reflects a recognition in the marketplace of the improvement in Danka's operational and financial performance. Danka will now have access to significantly more of the $50 Million commitment afforded by the Facility and will provide us with one of the highest levels of liquidity we have had in years. We view this as a strong showing of belief by our lender in the Company's future as well as their desire to participate in our plans for growth and success."