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John Carlson
Exec VP & CFO
(480) 505-4869


Alanco's StarTrak Expands Australian Market Penetration

Company Reports Over 1,000 Systems in Australian Service

(Scottsdale, AZ – February 3, 2010) - Alanco Technologies, Inc., (NASDAQ: ALAN), reported today that it’s StarTrak Systems subsidiary, the leading provider of wireless monitoring services for the refrigerated transport industry, has expanded market penetration in Australia during 2009 to over 1,000 units in service. The company’s Australian distributor, Monitoring-Oz, Pty. Ltd. has succeeded in growing the local market to over 22 customers subscribing to StarTrak’s full-level ReeferTrak® monthly services.

Monitoring-Oz introduced ReeferTrak service in Australia several years ago, initially to the rail market, providing StarTrak’s satellite communications platform, which was necessary to serve the remote distances involved in the Australian refrigerated rail transport market. In 2009, StarTrak and Monitoring-Oz introduced the Sentry® cellular GSM-based version of ReeferTrak, which has led to further growth in the intermodal and trucking market. In January, 2010, StarTrak’s new dual mode systems combining cellular flexibility and satellite coverage, was introduced by Monitoring-Oz. Wireless monitoring services to Monitoring-Oz Australian customers are delivered via StarTrak’s web application located on secure servers in New Jersey, USA.

“ReeferTrak is gaining broad acceptance by customers throughout Australia, in every segment of the market”, said Monitoring-Oz CEO, Don Reed. “The Australian refrigeration transport market has growth potential to reach at least 5,000 – 6,000 units in the near future, utilizing the Satellite-based system for rail and the new dual-mode system for general trucking fleets.”

Steve Hopkins, CEO of Hopkins Transport, a Monitoring-Oz customer, commented “We have deployed ReeferTrak units into our total fleet of refrigerated trailers to monitor and remotely manage the trailer box temperatures. We also transport live chickens, and the reefer management and visibility provided by ReeferTrak has greatly reduced their fatality rate through alarm notifications and the capability to make changes to the reefer temperatures remotely.”

Alanco Technologies, Inc.
provides wireless monitoring and asset management solutions through its StarTrak Systems subsidiary. StarTrak Systems is the dominant provider of tracking, monitoring and control services to the refrigerated or “Reefer” segment of the transportation marketplace, enabling customers to increase efficiency and reduce costs of the refrigerated supply chain. For more information, visit the Alanco website at www.alanco.com or StarTrak Systems at www.startrak.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.

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