Alanco/TSI PRISM Awarded $3 Million Plus Metropolitan Jail Contract

World's Largest Installation of RFID Tracking Technology to
Monitor People
SCOTTSDALE, Ariz.--(Business Wire)--
Alanco Technologies, Inc. (NASDAQ: ALAN) announced today that its
Alanco/TSI PRISM subsidiary was awarded a contract in excess of $3
million from a U.S. metropolitan jail to provide a 2.4 GHz Wi-Fi
compatible TSI PRISM(TM) RFID inmate tracking system. The system will
be utilized to track and monitor over 2,000 inmates at the jail
complex and to provide a state-of-the-art investigative tool and
safety system for the jail staff numbering in excess of 450 persons.
System installation is expected to be completed before year end and
will represent the largest application of RFID technology to track and
monitor people anywhere in the world. The new tracking system combines
Alanco's TSI PRISM RFID system with Wi-Fi compatible RTLS technology
from AeroScout, Inc.

Greg M. Oester, Alanco/TSI PRISM President, commented, "The
adoption of our RFID inmate tracking technology is accelerating in the
corrections market, and particularly, in the metropolitan jail segment
where we are actively pursuing major projects involving additional
coverage in total of over 25,000 inmates. This new award also marks
our attainment of a new record high project backlog in excess of $5.4
million."

Alanco Technologies, Inc. (NASDAQ: ALAN), headquartered in
Scottsdale, Arizona, is a rapidly growing provider of wireless
tracking and asset management solutions through its StarTrak Systems
and Alanco/TSI PRISM subsidiaries. Corporate website: www.alanco.com

StarTrak Systems is a leading provider of GPS tracking and
wireless asset management services to the transportation industry and
the dominant provider of tracking, monitoring and two-way control
services to the refrigerated or "Reefer" segment of the transportation
marketplace. StarTrak products increase efficiency and reduce costs of
the refrigerated supply chain through the wireless monitoring and
control of critical Reefer data, including GPS location, cargo
temperatures and Reefer fuel levels. StarTrak offers complete
integrated solutions for refrigerated trailers, trucks, railcars, and
containers. Additional information is available at www.StarTrak.com.

Alanco/TSI PRISM is the leading provider of RFID real-time
tracking technologies for the corrections industry. TSI PRISM systems
track and record the location and movement of inmates and officers,
resulting in enhanced facility safety and security and significant
staff productivity improvements. Utilizing proprietary RFID (Radio
Frequency Identification) tracking technology, TSI PRISM provides
real-time inmate and officer identification, location and tracking
both indoors and out, and is currently utilized in prisons in
Michigan, California, Illinois, Ohio, Missouri, Virginia, Indiana, and
Minnesota. Additional information is available at www.TSIPRISM.com.

The Company also participates in the data storage industry through
its wholly owned subsidiary, Excel Meridian Data, Inc. (EMD), which
specializes in providing unique data storage, backup and disaster
recovery solutions. EMD Storage product lines include: direct attached
storage (DAS), network attached storage (NAS) and storage area network
(SAN) solutions for any size business. In addition, EMD features
partnerships with: EqualLogic, VMware, Microsoft, DoubleTake and other
industry-leading hardware and software solution providers. For more
information visit: www.emdstorage.com.

EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN
THIS PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE
SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. ALL SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE
QUALIFIED BY, RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS
TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THOSE
STATEMENTS. THESE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED
TO, REDUCED DEMAND FOR INFORMATION TECHNOLOGY EQUIPMENT; COMPETITIVE
PRICING AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW
TECHNOLOGIES WHICH MAKE THE COMPANY'S PRODUCTS OBSOLETE; RAPID
INDUSTRY CHANGES; FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE
COMPANY'S STRATEGIES; THE ABILITY TO MAINTAIN SATISFACTORY
RELATIONSHIPS WITH LENDERS AND TO REMAIN IN COMPLIANCE WITH FINANCIAL
LOAN COVENANTS AND OTHER REQUIREMENTS UNDER CURRENT BANKING
AGREEMENTS; AND THE ABILITY TO SECURE AND MAINTAIN KEY CONTRACTS AND
RELATIONSHIPS.

Alanco Technologies, Inc.
Investor Relations, 480-607-1010
www.alanco.com
or
BPC Financial Marketing
John Baldissera, 800-368-1217

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