Danka and Hitachi Announce Strategic Partnership.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 29, 2000

Agreement for European Distribution

of Breakthrough Print-On-Demand Solutions

Danka Distribution BV, a unit of Danka Business Systems PLC (Nasdaq:DANKY), one of the world's leading independent office equipment distributors, has announced at On Demand in New York, a strategic partnership with Hitachi Koki Imaging Solutions, Inc. (HiKIS), one of the world's leading providers of digital copiers and networked printers, for distribution throughout Europe of Hitachi's new, ground-breaking Print On Demand systems.

The announcement was first made at CeBIT in Hannover, Germany, coinciding with the European launch of the new Hitachi DDP MicroPress Digital Document Factory.

Under terms of the agreement, Danka will have immediate distribution of both the DDP MicroPress(R) and the Hitachi DDP 70 printer. The new DDP Micropress creates a complete Digital Document Factory, featuring powerful job management utilities and finishing capabilities for high-volume digital document production. The efficient virtual engine printing approach allows multiple print engines to process jobs independently, or as a unit, producing output at peak-volume print speeds of up to 840 pages per minute, and at an affordable price. The DDP MicroPress system is based on the production printing capabilities of Hitachi's workhorse DDP 62 and DDP 70 network printers and utilizes the award-winning MicroPress technology from T/R Systems, Inc.

Brian L. Merriman, President and COO of Danka, lauded the agreement as a "new strategic relationship that will create a whole new way to do business in Europe. Founded in 1962, Hitachi is now fully digital, clearly making them the most experienced provider of comprehensive and flexible digital document solutions. The new DDP MicroPress makes that leadership even more evident," said Merriman.

Michael Stramaglio, President and COO of Hitachi Koki Imaging Solutions, Inc., noted that the agreement is not only good for both companies, but also for printing customers. "With Danka's established distribution network and excellent reputation for sales and service, this new agreement with Hitachi means that customers across Europe will now have access to an affordable Print-On-Demand system for the first time," said Stramaglio.

The DDP MicroPress uses a Windows NT based server, which, when combined with Hitachi print engines, allows users to assemble, process and print digital documents in a production environment. The system's speed, versatility (operates with either PC or Mac-based systems) reliability and breakthrough price/performance, make it a powerful alternative to a single-engine solution.

Danka Business Systems PLC (Nasdaq:DANKY), headquartered in London, England, and St. Petersburg, FL, 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 from 30 countries around the world. For additional information about copier, printer and other office imaging products from Danka, visit the web site at: www.danka.com.