[2] Danka Announces New $800 Million Credit Agreement.

Business Editors

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--January 18, 2000

Danka Business Systems PLC (Nasdaq:DANKY) today announced that it has entered into a commitment with Bank of America, N.A. and Banc of America Securities LLC, as agents, who will fully underwrite a new five-year $800 million senior credit facility. The loan will be syndicated to a group of financial institutions. Terms of the new Credit Agreement provide for a $500 million revolving credit facility and a $300 million term loan facility.

Larry K. Switzer, Danka's Chief Executive Officer, commented, "We are pleased that Bank of America, our current agent bank, has agreed to provide this financing for Danka. The new financing agreement provides us with flexibility and expected interest cost savings which will be instrumental in Danka's future growth."

Proceeds of the facility will be used to refinance the Company's existing bank indebtedness and for general corporate purposes. The Company expects closing to occur by the end of March 2000, subject to customary contingencies.

Danka Business Systems PLC headquartered in London, England and St. Petersburg, Florida is one of the world's largest independent suppliers of office imaging equipment and related services, parts and supplies. Danka provides office products and services in 30 countries around the world. For additional information about copier, printer and other office imaging products, please visit our web site at www.danka.com.

Forward-Looking Statements 

Certain statements contained in the press release, are forward looking, and certain information relating to the Company is based on the belief of management as well as assumptions made by, and information currently available, to management. The words, "expect," "believe," "possibly" and similar expressions as they relate to the Company or the Company's management, are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those reflected in the forward-looking statements, including but not limited to, the inability to finalize a definitive Credit Agreement, any material adverse change in financial markets or Danka, the inability to complete other necessary due diligence and other risks including those risks identified in any of the Company's other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date they are made.