Stmnt re: Senior Note Offer

RNS Number:0662N
Danka Business Systems PLC
02 July 2003


Embargoed until 1.30pm UK time                                       2 July 2003


                           DANKA BUSINESS SYSTEMS PLC
                           ("DANKA" OR "THE COMPANY")
                                        
              DANKA ANNOUNCES COMPLETION OF SENIOR NOTES OFFERING

Danka Business Systems PLC today announced the successful completion of the
offering of $175 million in new 11% senior unsecured notes due 2010 and the
closing of a $50 million senior secured revolving credit facility that was a
condition to the completion of the senior notes offering. The Company used the
net proceeds from the new senior notes to repay the remaining $107.1 million of
outstanding indebtedness under its existing bank credit facility; and as
previously announced, the Company intends to use a portion of the proceeds to
redeem $47.6 million of its zero coupon senior subordinated notes due on 1 April
2004 at their face value as soon as reasonably practicable. This press release
does not constitute a notice of redemption of Danka's zero coupon senior
subordinated notes due 2004. The remainder of the net proceeds from the new
senior notes will be used for general corporate purposes.

The new senior notes have a fixed annual interest rate of 11%, and an 11.5%
yield to maturity. The loans under the new credit facility will bear interest at
a range of between 175 and 250 basis points over LIBOR, depending on the amount
of borrowings outstanding. The Company did not draw on the new credit facility
to close the senior notes offering, and is required to maintain $20 million in
minimum availability through its three-year life.

The offering of the senior notes was made solely by means of a private placement
either to qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended, or to certain persons in offshore
transactions pursuant to Regulation S under the Securities Act. The new senior
notes have not been registered under the Securities Act and may not be offered
or sold in the United States absent registration or an applicable exemption from
registration requirements under the Securities Act.

                                     -ends-

Enquiries:

Danka Business Systems PLC
Paul Dumond, Company Secretary                                 020 7605 0150
Sanjay Sood, Senior VP (USA)                                001 727 576 6003

Weber Shandwick Square Mile                                    020 7067 0700
Katie Hunt


About Danka

Danka delivers value to clients worldwide by using its expert technical and
professional services to implement effective document information solutions. As
one of the largest independent providers of office imaging equipment, document
solutions and related services and supplies Danka enables choice, convenience
and continuity. Danka's vision is to empower customers to benefit fully from the
convergence of image and document technologies in a connected environment. This
approach should strengthen the company's client relationships and expand its
strategic value.

Forward-Looking Statements: Certain statements contained in this press release,
or otherwise made by our officers, including statements related to our future
performance and our outlook for our businesses and respective markets,
projections, statements of our plans or objectives, forecasts of market trends
and other matters, are forward-looking statements, and contain information
relating to us that is based on our beliefs as well as assumptions, made by, and
information currently available to, our management. The words "goal",
"anticipate", "expect", "believe" and similar expressions as they relate to us
are intended to identify forward-looking statements, although not all forward
looking statements contain such identifying words. No assurance can be given
that the results in any forward-looking statement will be achieved. For the
forward-looking statements, we claim the protection of the safe harbor for
forward-looking statements provided for in the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Such statements reflect our current views
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. Factors that might cause actual
results to differ materially from those reflected in any forward-looking
statements include, but are not limited to, the following: (i) any inability to
successfully implement our strategy; (ii) any inability to comply with the
financial or other covenants in our debt instruments; (iii) any material adverse
change in financial markets, the economy or in our financial position; (iv)
increased competition in our industry and the discounting of products by our
competitors; (v) new competition as the result of evolving technology; (vi) any
inability by us to procure, or any inability by us to continue to gain access to
and successfully distribute, new products, including digital products, color
products, multifunction products and high volume copiers, or to continue to
bring current products to the marketplace at competitive costs and prices; (vii)
any inability to arrange financing for our customers' purchases of equipment
from us; (viii) any inability to successfully enhance and unify our management
information systems; (ix) any inability to record and process key data due to
ineffective implementation of business processes and policies; (x) any negative
impact from the loss of a key vendor or customer; (xi) any negative impact from
the loss of any our senior management or key personnel; (xii) any change in
economic conditions in domestic or international markets where we operate or
have material investments which may affect demand for our products or services;
(xiii) any negative impact from the international scope of our operations; (xiv)
fluctuations in foreign currencies; (xv) any inability to achieve or maintain
cost savings; (xvi) any incurrence of tax liabilities beyond our current
expectations, which could adversely affect our liquidity; (xvii) any delayed or
lost sales and other impacts related to the commercial and economic disruption
caused by past or future terrorist attacks, the related war on terrorism, the
fear of additional terrorist attacks or any outbreak of the severe acute
respiratory syndrome; and (xviii) other risks including those risks identified
in any of our filings with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
reflect our analysis only as of the date they are made. Except as required by
applicable law, we undertake no obligation, and do not intend, to update these
forward-looking statements to reflect events or circumstances that arise after
the date they are made. Furthermore, as a matter of policy, we do not generally
make any specific projections as to future earnings nor do we endorse any
projections regarding future performance which may be made by others outside our
company.

Danka is a registered trademark and Danka @ the Desktop is a trademark of Danka
Business Systems PLC.


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STRUUAURONRBRAR