MALVERN, Pa.--April 21, 2005-- IKON Office Solutions, the world's largest independent channel for document management systems and services, today announced that the company will report preliminary financial results for the second quarter of fiscal 2005 on Thursday, April 28, 2005. The company also announced that it is conducting a review of its billing controls and reserve practices for trade accounts receivable, and that this review will not be completed by April 28. During an analysis of aged trade receivables conducted during the quarter, and in connection with performing self-assessment and testing of its internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002, the company identified deficiencies in the processes and timeliness by which it issues and adjusts certain invoices. The identified deficiencies result from the centralization of billing centers and the migration to a new billing platform and relate to the company's U.S. trade accounts receivable, and do not affect receivables arising under the company's European, Canadian and Mexican operations, receivables owing from General Electric Capital Corporation ("GE") under the Company's leasing relationship with GE, or receivables arising under its Legal Document Service and Business Document Service businesses. In connection with these developments, management has initiated a comprehensive review to determine the extent to which certain trade receivables as of March 31, 2005 may be overstated due to billing errors and insufficient reserves relating to aged receivables. Preliminary sample data suggest that trade receivables as of March 31, 2005 may be overstated by an estimated $45 million out of a total trade accounts receivables balance of $376 million. Total accounts receivable as of March 31, 2005 were $721 million. Management believes that the estimated overstatement represents a cumulative effect over multiple periods, but stressed that the estimate relates to the company's balance sheet as of March 31, 2005, and is based only on the sample data assessed to date. As the company completes its detailed analysis, it will assess the accuracy of the estimate, evaluate the impact on prior periods, and determine the extent to which it will be required to restate results for any prior periods. Any impact is expected to be recorded as a non-cash charge that will not impact cash flow from operations. Due to the time and effort involved in completing the required analysis, the company anticipates that it will need to delay filing its Form 10-Q for the fiscal quarter ended March 31, 2005. Matthew J. Espe, IKON's Chairman and Chief Executive Officer commented, "We identified this issue and are acting quickly to fully resolve it. We are committed to taking every step to fix not only the current issue, but also its root causes so that we can remove any barriers to creating profitable growth going forward."