Danka reports record third quarter results.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Jan. 25, 1995--Danka Business Systems PLC (NASDAQ:DANKY) Wednesday announced record results for its third quarter ended Dec. 31, 1994.

Revenue increased 47% to $203.5 million, while net earnings grew 40% to $10.0 million, or 21 cents per American Depositary Share (``ADS''). For the nine months, revenue increased 56% to $563.9 million, while net earnings increased 51% to $27.8 million, or 57 cents per ADS.

Dan Doyle, chief executive officer stated: ``I am delighted with our third quarter results. Our core retail operations continue to achieve solid growth and we are pleased with the performance of our recent acquisitions. During the third quarter we acquired 12 companies which should add annual revenues of over $60 million.

``Our recent U.S. acquisitions were highlighted by the addition of American Business Equipment Inc., a Sharp dealer located in Columbus, Ohio with annual sales of $16 million, and Abacus Business Products, a $10 million Sharp and Ricoh  dealer located in Hartford, Conn.

``In addition, we announced the acquisition of Capital Business Machines, the largest Minolta dealer in the U.K. with annual revenues of $10 million. The continued dedication of our management team has been the real source of our success and we look forward to the fourth quarter with confidence.''

Danka Business Systems PLC, headquartered in St. Petersburg, is one of the largest and fastest growing independent suppliers of automated office equipment and related services and supplies in North America and the United Kingdom. Danka's ADSs are listed on the NASDAQ/NMS and its Ordinary shares are listed on the London Stock Exchange. -0-

                   DANKA BUSINESS SYSTEMS PLC
              CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per American Depositary Share ("ADS") amounts)

                                For the three months ended
                                Dec. 31,          Dec. 31,
                                  1994              1993
                               (Unaudited)      (Unaudited)
Revenue:
Retail equipment sales          $   81,856      $   51,703
Retail service, supplies and
  rentals                           96,760          66,833
Wholesale                           24,927          19,924
Total revenue                      203,543         138,460

Costs and operating expenses:
Cost of retail equipment sales      49,131          30,709
Retail service, supplies and
  rental costs                      51,023          34,844
Wholesale costs of revenue          20,404          15,744
Selling, general and administrative
  expenses                          62,767          43,608
Amortization of intangible assets    1,753             975
Total costs and operating expenses 185,078         125,880

Earnings from operations            18,465          12,580
Interest, net                        2,003             654

Earnings before income taxes        16,462          11,926
Provision for income taxes           6,426           4,778

Net earnings                    $   10,036      $    7,148
Net earnings per ADS              21 cents        15 cents

Weighted average ADSs               48,799          47,278

Note:  All periods have been adjusted for the two for one ADS
       split.

                                For the nine months ended
                                Dec. 31,          Dec. 31,
                                  1994              1993
                               (Unaudited)      (Unaudited)
Revenue:
Retail equipment sales          $  225,486      $  136,284
Retail service, supplies and
  rentals                          267,168         170,067
Wholesale                           71,224          55,108
Total revenue                      563,878         361,459

Costs and operating expenses:
Cost of retail equipment sales     135,957          82,336
Retail service, supplies and
  rental costs                     141,201          89,028
Wholesale costs of revenue          58,125          44,348
Selling, general and administrative
  expenses                         173,399         109,589
Amortization of intangible assets    4,598           2,607
Total costs and operating expenses 513,280         327,908

Earnings from operations            50,598          33,551
Interest, net                        4,821           2,679

Earnings before income taxes        45,777          30,872
Provision for income taxes          17,947          12,489

Net earnings                    $   27,830      $   18,383
Net earnings per ADS              57 cents        42 cents

Weighted average ADSs               48,630          44,096

Note:  All periods have been adjusted for the two for one ADS
       split.

                   DANKA BUSINESS SYSTEMS PLC
                  CONSOLIDATED BALANCE SHEETS
                        (In thousands)

                                  Dec. 31,     March 31,
                                    1994         1994
                                 (Unaudited)
Assets
Current Assets:
Cash                              $   1,309    $  15,620
Accounts receivable, net            116,882       93,309
Inventories                         130,654       79,783
Other current assets                  5,275       12,428
Total current assets                254,120      201,140

Equipment on operating leases,
  net                                43,522       37,515
Property and equipment, net          31,397       22,120
Intangible assets, net              133,588       89,345
Other assets                         11,054        6,684
Total assets                      $ 473,681    $ 356,804

Liabilities and shareholders' equity
Current liabilities:
Current maturities of long-term
  debt and notes payable          $  22,629    $   2,892
Accounts payable                     47,682       34,747
Accrued expenses                     32,433       32,199
Deferred revenue                     40,453       35,052
Total current liabilities           143,197      104,890

Long-term debt, less current
  maturities                        115,803       67,520
Deferred income taxes                21,619       14,469
Total liabilities                   280,619      186,879

Shareholders' equity:
Ordinary shares, 1.25 pence stated
  value; 300,000,000 authorized;
  19,505,218 and 187,572,771
  issued and outstanding              4,033        3,974
Additional paid-in capital           91,426       90,376
Retained earnings                    98,928       76,066
Currency translation adjustment      (1,325)        (491)
Total shareholders' equity          193,062      169,925
Total liabilities and shareholders'
  equity                          $ 473,681    $ 356,804

NOTE TO CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF EARNINGS
(Unaudited)

Note 1 - Basis of Presentation

The accompanying consolidated balance sheet as of Dec. 31, 1994, and
consolidated statements of earnings for the three months and the
nine months ended Dec. 31, 1994 and 1993 of Danka Business Systems
PLC are unaudited.  In the opinion of management, all adjustments,
consisting of normal recurring accruals, necessary for fair
presentation of the results of operations for the interim periods
have been reflected herein.  The results of operations for the
interim periods are not necessarily indicative of the results to be
expected for the entire year.

Note 2 - Refinancing of Bank Debt

In December 1994, Danka Holding Co. (``Danka'') amended its
principal credit facility (``Credit Facility Loan'') to provide a
$50 million multicurrency facility to support expansion outside of
the United States.  This amendment brings the total borrowing
availability under the Credit Facility Loan to $200 million and is
limited by covenants similar to those which existed prior to the
amendment.

CONTACT: Danka Business Systems PLC, St. Petersburg

William T. Freeman, 813/576-6003

or

Paul G. Dumond, 011-4471-603-1515