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Alanco Investor Relations
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Alanco/TSI PRISM, Inc. Awarded $1.1 Million Contract for
California Juvenile Detention Facility

(Scottsdale, AZ – January 8, 2008) – Alanco Technologies, Inc. (NASDAQ: ALAN), announced today that its Alanco/TSI PRISM subsidiary was awarded a contract from Integrator.com, a division of Stanley Security Solutions, Inc. (Stanley), to provide a 2.4 GHz Wi-Fi compatible TSI PRISM RFID tracking system for the Sacramento County Youth Detention Center located in Sacramento, California. The new tracking system, valued at approximately $1.1 million, combines Alanco’s TSI PRISM RFID system with Wi-Fi 802.11 compatible RTLS technology from AeroScout, Inc. Initially, the TSI PRISM system will be utilized as an officer safety system, tracking and monitoring approximately 450 staff personnel, with the approximately 500 facility detainees to be included at a future date. Stanley, a provider of correctional electronic systems including integrated access and security solutions, will install the TSI PRISM system under a separate contract.

Greg M. Oester, Alanco/TSI PRISM, Inc. President, stated, “The selection of TSI PRISM for the Sacramento youth detention center coincides with an elevated national interest in upgrading both staff and detainee safety at juvenile correctional facilities and will be our third such installation in the U.S.A. TSI PRISM presents a strong value proposition for the juvenile facility in terms of increasing safety and reducing liability, with our Wi-Fi compatibility providing for economical and seamless integration with other staff communication devices.”

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 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, and Indiana. 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., a manufacturer of Network Attached Storage (NAS) systems. Excel delivers uniquely scalable, manageable and cost-effective storage solutions for all network storage customers. For further information, visit www.emdstorage.com.

About Stanley Security Solutions

Stanley Security Solutions, a division of The Stanley Works (NYSE: SWK), is a provider of integrated access and security solutions for institutional, commercial and industrial businesses and organizations. With a strong emphasis on service, Stanley Security Solutions delivers a comprehensive suite of security products, software and integrated systems directly to end user customers. Stanley Security Solutions is committed to extending its position as a leading comprehensive resource for a broad and extensive array of solutions that span the entire security spectrum.

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.

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