June 19, 2007 -- ST. PETERSBURG, Fla.-- Danka Business Systems PLC today announced that it has entered into an agreement with GE Corporate Lending for a new senior secured credit facility totaling $145 million that would be used, together with the proceeds of the Company's previously completed sale of its European operations, to significantly reduce and refinance the Company's existing indebtedness.

Upon completion of this financing, the Company expects to reduce its overall indebtedness to approximately $120 million, down from $254 million. It will also reduce annual interest expense to approximately $13 million from the current $29 million.

"Today's agreement with GE Corporate Lending represents another significant milestone in the reshaping of Danka," said A.D. Frazier, Chairman and Chief Executive Officer. "This credit facility, along with the other important financial and operational steps we have taken in the past year, will provide Danka with the appropriate long-term flexibility from which to grow our business. It also reaffirms the Company's commitments to our valued vendors and existing customers, and significantly enhances the ability of our talented team of employees to compete for and win new customers, as well as deliver even greater value."

The new credit facility includes a $40 million Senior Secured Revolving Credit Facility, a $60 million Senior Secured Term Loan and a $45 million Second Lien Loan.

Completion of the financing is subject to a number of customary closing conditions. The Company expects the transaction to close by June 22, 2007. Representing Danka in the transaction was the investment banking firm Houlihan Lokey and the law firm Skadden, Arps, Slate, Meagher & Flom.