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Danka Expands Strategic Relationship with Pitney Bowes

Press release from the issuing company

ST. PETERSBURG, Fla.--Jan. 17, 2006-- Danka Business Systems PLC today announced that the company has entered into an expanded multi-year strategic relationship with its largest customer, Pitney Bowes Management Services, Inc., a wholly-owned subsidiary of Pitney Bowes Inc.. Under the terms of this agreement Danka becomes PBMS's preferred service provider for the majority of its copier equipment fleet in the U.S. "The extension and expansion of our Pitney Bowes relationship will generate substantial benefits for both companies," commented Todd Mavis, Danka's Chief Executive Officer. "By leveraging our service-driven capabilities, including our innovative Managed Print Services offerings, we will enable Pitney Bowes to unify and streamline the bulk of its copier support requirements - resulting in improved fleet utilization and lower overall total costs of ownership. Equally important, this expanded relationship will also be a key driver in our goal to stabilize Danka's services revenue -- a key tenet of our strategic plan. This agreement builds on our excellent long-term relationship with Pitney Bowes and is further demonstration of our shared market views including a commitment to providing our customers with the best support in the industry." "Our important relationship with Danka continues to grow and strengthen," noted Vincent De Palma, President, Pitney Bowes Management Services (PBMS). "This new agreement will assist Pitney Bowes in growing its share of the facilities management market by offering a complete document management solution, supported by Danka across the U.S. for both new and existing customers. This consolidation of our U.S. services needs was made possible by our confidence in Danka and their demonstrated industry leadership in providing superior service and support.

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