MCI Outsourcing Agreement

19 Jul 2005 12:00

Danka Business Systems PLC19 July 2005 Embargoed until 12.00 19th July 2005 DANKA BUSINESS SYSTEMS PLC ("Danka" or the "Company") DANKA TO OUTSOURCE INFORMATION TECHNOLOGY OPERATIONS TO MCI IN $70 MILLION DEAL MCI to Manage and Enhance Danka's IP Infrastructure Danka Projects Substantial Savings After Full Implementation Danka Business Systems PLC (NASDAQ: DANKY; LSE: DNK) and MCI, Inc. (NASDAQ:MCIP) today announced a five-year agreement in which Danka Business Systems willoutsource the balance of its U.S. information technology (IT) operations to MCI.As Danka's primary technology provider, MCI will manage all of Danka's corenetwork services, including its IT operations and applications support, WideArea Network, Local Area Network, IP services, servers, desktops and phonesystems, as well as oversee Danka's network of ancillary technology vendors andpartners. As part of this $70 million agreement, Danka will transition more than 60employees to MCI and its application support provider, Titan TechnologyPartners. Danka expects to generate substantial yearly savings once theagreement is fully implemented, enabling Danka to drive productivity and enablefurther growth of its business. "This agreement with MCI is another step forward in our Vision 21 program toreduce our costs and improve our business practices. MCI is providing a fullymanaged, integrated IP-based IT infrastructure, scalable to our current andfuture needs which will enable us to elevate our IT environment," said ToddMavis, Danka's chief executive officer. "At the same time, we are able tosubstantially reduce our IT costs. We view MCI as a world-class technologycompany and this new agreement builds on an existing relationship under which weprovide services to them." "Providing MCI's Managed Services expertise to meet Danka's advanced IPrequirements, we were able to showcase our complete portfolio of services, fromthe desktop to the network," said Wayne Huyard, president of MCI U.S. Sales andService. "As Danka's network and systems integrator, we will deliverbest-in-class IT processes and resources to create an operating model where MCImanages a continuum of technology service across multiple technology vendors." - ends - For further information please contact: Danka Business Systems PLCDonald Thurman, Danka Investor Relations 001 770 280 3990Paul Dumond, Company Secretary 020 7605 0150 MCI, Inc.Janet Brumfield, Public Relations 001 614 723 1060 Weber Shandwick Square MileMike Kirk / Helen Thomas 020 7067 0700 About Danka Danka delivers value to clients worldwide by using its expert technical andprofessional services to implement effective document information solutions. Asone of the largest independent providers of enterprise imaging systems andservices, the company enables choice, convenience, and continuity. Danka'svision is to empower customers to benefit fully from the convergence of imageand document technologies in a connected environment. This approach willstrengthen the company's client relationships and expand its strategic value.For more information, visit Danka at www.danka.com. About MCI, Inc. MCI, Inc. (NASDAQ: MCIP) is a leading global communications provider, deliveringinnovative, cost-effective, advanced communications connectivity to businesses,governments and consumers. With one of the most expansive global IP backbonesand wholly-owned data networks, MCI develops the converged communicationsproducts and services that are the foundation for commerce and communications intoday's market. For more information, go to www.mci.com. Certain statements contained in this press release, including statements relatedto Danka's future business and financial performance, are forward-looking. Suchstatements reflect the current views of Danka with respect to future events andare subject to certain risks, uncertainties, and assumptions that could causeactual results to differ materially from those reflected in the forward-lookingstatements. Readers are cautioned not to place undue reliance on these forwardlooking statements, which reflect management's analysis only as of the date theyare made. Danka is a registered trademark and Danka @ the Desktop and MyDanka.com aretrademarks of Danka Business Systems PLC. All other trademarks are the propertyof their respective owners. This information is provided by RNS The company news service from the London Stock Exchange