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IKON Completes Renewal of U.S. Lease Program Relationship with GE Capital Solutions

Press release from the issuing company

June 26 MALVERN, Pa.-- IKON Office Solutions, the world's largest independent channel for document management systems and services, today announced that it has entered into a definitive agreement with GE Capital Solutions for the previously announced renewal of its lease program relationship in the United States, which was scheduled to expire in 2009.

Under the terms of the definitive agreement, the parties have extended their current lease program agreement through fiscal year 2014, and GE Capital Solutions will continue to serve as IKON's preferred financing source in the United States. In consideration of the renewal, IKON will receive enhanced lease origination fees, while continuing to share in gains on lease-end activities.

As previously announced, IKON currently anticipates that the transaction will generate approximately $170 million to $200 million of aggregate incremental operating income during its fiscal years 2009 through 2014 compared to the renewal terms in the original agreement. IKON does not expect the renewal to have a material impact on its projected lease program financial results for fiscal years 2007 or 2008.