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Danka Begins Rollout of Upgraded Business Systems

Press release from the issuing company

ST. PETERSBURG, Fla.--May 7, 2002--Danka Business Systems PLC today began the conversion of its legacy business systems as part of a corporate initiative to improve customer service. Danka is installing the Oracle 11i E-Business Suite to standardize, upgrade, and integrate its operations across the enterprise. Implementation of the Oracle suite is a key component of Danka's comprehensive Vision 21 process and system reengineering program. "Vision 21 represents the company's effort to change how we do business," explained Gene Hatcher, Danka's chief information officer. "We systematically have been improving and streamlining our business processes - everything from how we interact with customers to how we manage the supply chain to how we measure our business. The rollout of new Oracle systems is the culmination of these efforts and will deliver significant benefits to our customers, business partners, and employees." The E-Business Suite went live this week in the company's Atlanta region; conversions will occur in stages across the United States over the next several months. The company plans to convert systems in Europe and elsewhere internationally in a future phase. In addition, upgraded financial systems went live on April 1 to coincide with the start of Danka's new fiscal year. "After much planning and significant investments in new software, testing, and training, we now can begin to reap the rewards of our efforts," said Lang Lowrey, Danka's chairman and CEO. "Our Vision 21 initiative is an essential part of our umbrella strategy to deliver a world-class customer experience. These new systems will make it easier for clients to do business with us, delivering improvements such as more accurate billing, enhanced responsiveness, and faster implementation of advanced solutions. In addition, we expect to see steady improvements in the productivity of our associates and realize significant cost savings over the longer-term." Since the acquisition of Eastman Kodak's office imaging division in 1997, Danka's systems have run a mix of legacy hardware and software programs. By implementing the Oracle E-Business Suite, Danka will be able to replace these systems with an integrated applications infrastructure that will increase efficiencies, reduce costs, and provide an advanced platform for the company's future development. Danka estimates that it has invested $20 million in its Vision 21 initiative to date. Another approximately $5 million is expected to be spent in fiscal 2003 to complete the Oracle implementation in the United States and also undertake installations in Canada and Brazil. In addition to tangible customer satisfaction improvements, the company expects to achieve cost savings and operational efficiencies starting in its fiscal 2003 third quarter. "Our Vision 21 initiative is reflective of Danka's industry leadership position," concluded Lowrey. "Our efforts will enable us toreengineer outdated processes and implement a more efficient business model that is better attuned to serving our customer's evolving needs."