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Alanco's StarTrak Accelerates Penetration
of Refrigerated Truck/Trailer Market,
Adding 16 New Fleet Accounts in December/January

(Scottsdale, AZ – February 12, 2008) – Alanco Technologies, Inc. (NASDAQ: ALAN), announced today that its StarTrak Systems subsidiary, the leading provider of wireless GPS tracking, monitoring, and two-way control systems for the refrigerated transport industry, has added sixteen new refrigerated trailer fleet customers in December/January, collectively operating approximately 1,500 refrigerated trailers. Including immediate order releases, new equipment purchases by these new accounts are scheduled to total about $1,000,000 over the next several months, and will generate additional subscription data services revenue of approximately $300,000 annually.

Tim Slifkin, StarTrak President, commented, “This recent new account activity marks the successful launch of StarTrak’s Sentry truck/trailer product line that has been under development for 18 months. Full commercial acceptance and deployment of the new Sentry is a critical step towards resumption of StarTrak’s rapid historical growth in the refrigerated transport industry, as the truck/trailer segment of the total market comprises over 250,000 units.”

“Based upon current sales backlog and major new account activity, we expect StarTrak equipment sales and service revenues to rebound to over $3,000,000 in the fiscal third quarter period, ending March 31, 2008, increasing to over $4,500,000 in the final quarter and resulting in a complete StarTrak operating profit turnaround.”

Tom Robinson, Executive Vice President of StarTrak Systems stated, “For refrigerated truck and trailer fleets, ReeferTrak™ Sentry provides meaningful operational and economic results for customers, leading to significant returns on investment. The Sentry service allows freight operators to observe, systematically organize and improve important aspects of their refrigerated operations. Sentry has become particularly useful for monitoring operations that have been historically cumbersome to measure, such as the significant queue times experienced by trailers not attached to tractor power units, individual customer delivery operations and the basic operational cycles within distribution facilities. StarTrak is delivering the leading wireless solution in the industry because it integrates GPS logistics of truck/trailer movements with meaningful refrigerated events allowing customers to continuously improve inventory, refrigerated trailer fuel usage, trailer utilization, delivery speed and quality for years to come.”

StarTrak’s new trailer fleet customer additions include the following companies:

           • Roehl Transport, Inc., - Marshfield, Wisconsin
           • Florida Beauty Flora, Inc. - Miami, Florida
           • Purdy Brothers Trucking Company - Loudon, Tennessee
           • M C Van Kampen Trucking, Inc. - Wyoming, Michigan
           • Paul L. Floody, Inc. - Homestead, Florida
           • Heartland Transport, Inc. - Esterville, Iowa
           • International Transportation Services, Inc. - Miami, Florida
           • Kamble Companies Transportation Services, Inc. - Phoenix, Arizona
           • Lara’s Trucking - Modesto, California
           • Meddler Trucking - Hudsonville, Michigan
           • Pegasus Transportation - Louisville, Kentucky
           • Boaty’s Produce Inc. - Jackson, Georgia
           • Dee King - Amarillo, Texas
           • Solutions 1 Transport, Inc. - Orlando, Florida

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, 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. (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.

 


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