Danka to Outsource Information Technology Operations to MCI In
$70 Million Deal
MCI to Manage and Enhance Danka's IP Infrastructure
ST. PETERSBURG, Fla. and ASHBURN, Va., July 19 /PRNewswire-FirstCall/ -- Danka
Business Systems PLC (NASDAQ:DANKY) and MCI, Inc. (NASDAQ:MCIP) today announced
a five-year agreement in which Danka Business Systems will outsource 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 core network
services, including its IT operations and applications support, Wide Area
Network, Local Area Network, IP services, servers, desktops and phone systems,
as well as oversee Danka's network of ancillary technology vendors and
partners.
As part of this $70 million agreement, Danka will transition more than 60
employees to MCI and its application support provider, Titan Technology
Partners. Danka expects to generate substantial yearly savings once the
agreement is fully implemented, enabling Danka to drive productivity and enable
further growth of its business.
"This agreement with MCI is another step forward in our Vision 21 program to
reduce our costs and improve our business practices. MCI is providing a fully
managed, integrated IP-based IT infrastructure, scalable to our current and
future needs which will enable us to elevate our IT environment," said Todd
Mavis, Danka's chief executive officer. "At the same time, we are able to
substantially reduce our IT costs. We view MCI as a world-class technology
company, and this new agreement builds on an existing relationship under which
we provide services to them." "Providing MCI's Managed Services expertise to meet Danka's advanced IP
requirements, we were able to showcase our complete portfolio of services, from
the desktop to the network," said Wayne Huyard, president of MCI U.S. Sales and
Service. "As Danka's network and systems integrator, we will deliver
best-in-class IT processes and resources to create an operating model where MCI
manages a continuum of technology service across multiple technology vendors." About MCI, Inc.
MCI, Inc. (NASDAQ:MCIP) is a leading global communications provider, delivering
innovative, cost-effective, advanced communications connectivity to businesses,
governments and consumers. With one of the most expansive global IP backbones
and wholly-owned data networks, MCI develops the converged communications
products and services that are the foundation for commerce and communications
in today's market. For more information, go to http://www.mci.com/.
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 enterprise imaging systems and
services, the company 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 will
strengthen the company's client relationships and expand its strategic value. For more information, visit Danka at http://www.danka.com/.
Certain statements contained in this press release, including statements
related to Danka's future business and financial performance, are forward-
looking. Such statements reflect the current views of Danka 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. Readers are cautioned not to place undue
reliance on these forward looking statements, which reflect management's
analysis only as of the date they are made.
Danka is a registered trademark and Danka @ the Desktop and MyDanka.com are
trademarks of Danka Business Systems PLC. All other trademarks are the property
of their respective owners. DATASOURCE: MCI, Inc.; Danka Business Systems PLC CONTACT: Janet Brumfield of MCI Public Relations, 1-800-644-NEWS; or Danka Investor Relations - Donald W. Thurman, +1-770-280-3990, or Danka London - Paul G. Dumond, +44-207-605-0154 Web site: http://www.mci.com/ http://www.danka.com/
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