Danka Announces Signing of Letter of Intent On Outsourcing Business.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--March 22, 1999--Danka Business Systems PLC (Danka) (Nasdaq:DANKY) and Schroder Ventures announced today that they have entered into a non-binding Letter of Intent regarding the proposed sale of Danka's outsourcing business, Danka Services International (DSI).

Under the terms of the Letter of Intent, Danka will sell its outsourcing business to Schroder Ventures and will retain a minority equity interest in the ongoing business. Further, Danka will enter a long-term agreement with DSI to provide equipment and related parts, supplies and services.

Larry Switzer, Danka's Chief Executive Officer, commented: "We are pleased to be entering an ongoing relationship with Schroder Ventures as a strategic partner. Our proposed equity interest in the ongoing business reinforces our belief in the growing outsourcing and document services market."

DSI has annual revenues of over $275 million and employs over 3,000 employees. DSI is headquartered in Rochester, New York and has offices throughout the United States, Canada and Europe.

Danka and Schroder Ventures anticipate the signing of a definitive agreement in the coming weeks, whereupon a further announcement will be made.

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 over 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.

Schroder Ventures is one of the world's leading private equity providers with $3.5 billion of funds under management.

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 "goal", "expect", "believe" 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: (i) the Company and Schroder's failure to reach a definitive agreement regarding the sale of DSI, (ii) the failure of the sale of DSI to close, (iii) a decline in the growth of the outsourcing business and (iv) loss of key customers and/or employees of DSI. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflects management's analysis only as of the date hereof.