ST. PETERSBURG, FL., Danka Business Systems PLC (NASDAQ: DANKY) announced that the Board of Directors has accepted the resignation of Larry K. Switzer as Chief Executive Officer and Director effective immediately. The Board has formed a search committee to promptly identify and appoint a permanent successor. Michael B. Gifford, a non-executive Director since September, 1999, has been appointed to perform the functions of Chief Executive Officer until a permanent successor is found. Mr. Gifford is an experienced executive, having most recently served as Group Chief Executive of The Rank Organization PLC, a London-based leisure and entertainment conglomerate and the joint-venture partner for Xerox operations outside the Americas. Danka also announced that, based on preliminary indications, its results for the second quarter of fiscal 2001 ended September 30, 2000 will be below analysts' estimates. Danka's financial performance for the quarter will primarily reflect soft hardware revenues in the United States, margin pressures, industry factors and currency weakness. The actual results are in the process of being determined by Danka and will be reported when complete. The Company is currently evaluating whether it will take a special charge relating to a portion of its goodwill and certain other long-lived assets, and is considering other efforts to reduce costs that may result in additional such charges. Danka Chairman David Kendall commented: "What the Company is experiencing this quarter appears consistent with what others in the industry are reporting. Nevertheless, we believe actions the Company is taking, along with the strength of Danka's product portfolio, sales and service capabilities and facilities management, should position the Company to compete in this evolving digital environment."