DCML LLC Files a Letter to Danka Business Services PLC (OTC: DANKY) Shareholders Regarding Recent Events Around the Anticipated Sale of Danka Office Imaging Company to Konica Minolta


NEW YORK, June 19 /PRNewswire/ --

The following is a letter from DCML LLC to shareholders of Danka Business
Services PLC (OTC Bulletin Board: DANKY).

Fellow Danka Shareholders:

Recent communications from Danka Business Services PLC (the "Company")
compel us to respond, highlight inaccuracies and half-truths, and expose in
our opinion the utter disregard of the Company's Board of Directors ("Board")
and management for the interests of ordinary shareholders.

1. At the start, it is worth noting that the Company has still failed to
produce updated financials for its shareholders. Such financials are critical
to our understanding of the transactions that management has proposed, and
the evaluation of their fairness. Company shareholders were last given
financials at the end of December. We can only wonder why the management and
the Board refuse to make available updated numbers. Any diligent fiduciary
would arguably make the preparation of such financials an urgent priority in
light of the Board's stated belief that the Company's financial condition is
in such peril that the Company "would be placed into solvency proceedings and
it is unlikely that holders of ordinary shares (including American Depositary
Shares) would receive any distribution."(1) As stated in prior letters to the
Board, as shareholders we do not accept -- and we should not be asked to
accept -- the Board's contentions and innuendo regarding Company finances
until and unless we are presented with up-to-date financials. As such, we
remain steadfast in our belief that if the proceeds of the sale were to be
distributed there would be US$112 million to US$122 million to be distributed
to ordinary shareholders and participating shareholders, of which we remain
confident an equitable distribution of US$1.18 to US$1.28 would be
distributable to American Depositary Shareholders ("ADS").

2. In Mr. Frazier's recent communication to shareholders, he has
attempted to impugn our integrity and motives by suggesting that we have
become shareholders of Danka "only after the announcement of the sale of DOIC
to Konica Minolta". This assertion is simply false. Members of DCML were
shareholders prior to the announcement of the sale -- and in fact owned 1.5x
the amount of shares owned by the Board. Moreover, certain members of DCML,
through other entities, have owned shares in the Company since the arrival of
Mr. Frazier at Danka years ago and have had numerous conversations and
meetings with Mr. Frazier and senior management. Over the course of this
longstanding relationship, we have witnessed the Board and senior management
steward the decline of ordinary shareholders value by more than 90%.

3. We note that neither Company management nor the Board has responded to
our recent letter in which we highlighted how we believe the Company is
attempting to rig the forthcoming vote, by granting the right of the
Depositary to give discretionary proxy for shares not voted to a person
designated by Danka.(2) While similar behavior might be common in countries
with a history of political repression and less developed democratic
cultures, shareholders expect and deserve more from the fiduciaries of a
listed public company in the UK and US. If the Board's vote-rigging behavior
is not unlawful, it should be.

4. Finally, while we have come to expect the Board to act in a manner
that ignores the interests of ordinary shareholders, we were taken aback by
the brazen nature of the Company's Schedule 14A filing dated June 18, 2008.
In this filing, the Board has made a very plain threat: if shareholders do
not approve the sale of DOIC to Konica Minolta, it will seek to delist from
the London Stock Exchange -- and "upon delisting from the London Stock
Exchange, a sale of DOIC to Konica Minolta or other alternative transaction
would not require shareholder approval."(3) In other words, we believe the
Board is telling us if we as shareholders do not vote for the sale, the Board
will take steps to render our approval unnecessary.

When we first read this statement, we were shocked by its audacity. It is
hard to imagine a threatened course of action that is less consistent with
the exercise of fiduciary duty. It is hard to imagine a course of action that
would invite litigation more than this threatened sequence of events. Simply
put, the Board is telling us -- all of us shareholders -- that we do not own
the company, and that our will, our votes do not matter, and that the Board
knows what is best. (In the Board's view, of course, what is best begins with
a greater than US$9 million payout to management, substantially in excess of
what ordinary shareholders were slated to receive under the Board's original
proposal.)

That said, we were recently heartened to see that the Board had decided
to make a very modest course correction and decouple the sale of DOIC from
its unwise voluntary liquidation proposal. We had hoped that this decoupling
would soon be followed by a proposal to split more equitably the proceeds of
the sale of DOIC. A win-win resolution, we believed, was potentially within
reach. Instead, the Board has resorted to threats and to trashing the
fundamentals of shareholder democracy. This is truly an unfortunate turn of
events.

As a shareholder representing over 5,237,700 ADS or 8.1% of ordinary
shares outstanding, DCML intends to propose a slate of directors to replace
the Company's nominees at the Company's upcoming Annual Meeting. We are
currently contemplating all options that will cause shareholder interests as
a whole to again be taken seriously within Danka.

Respectfully,

Robert Andrade             Rosty Raykov

    DCML LLC
    +1-212-332-3342

    1) Def.14A filed on 6/18/08 p.3
    2) Def.14A filed on 6/18/08 voting instructions.
    3) Def.14A filed on 6/18/08 p.4



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