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Alanco's TSI PRISM™ Wins Missouri RFP
For RFID Tracking in Two Early Release Facilities
 

(Scottsdale, AZ – March 23, 2006) – Alanco Technologies, Inc. (NASDAQ: ALAN), developer of the TSI PRISM RFID officer safety and inmate tracking system for the corrections industry, announced today that the Missouri Department of Corrections (MDOC) has selected the Company to provide TSI PRISM systems for two new early release facilities (Community Supervision Centers) in Farmington and St. Joseph, Missouri.

The Missouri Centers, housing up to fifty inmates each, will be utilized to re-integrate inmates from a prison environment back into society.  Inmates are permitted to leave the facility during the day and return at the end of their allotted time out.  Inmates serve a portion of their sentence in these lower operating cost facilities rather than prison, reducing overall costs of incarceration.  Alanco’s TSI PRISM system will assist in managing the inmate movement, automating scheduling and headcount, and electronically monitoring inmates’ activity within the facilities.

The MDOC initiated their Request for Proposal (RFP) procurement process for this project in December of 2005, and the Company expects formal contract award within several weeks.

Alanco’s Chairman and Chief Executive Officer, Robert R. Kauffman, commented, “According to the U.S. Department of Justice, over 2,000 early release facilities were in operation in 2004. Recent TSI PRISM system cost reductions now enable us to provide an economically viable RFID tracking capability for these smaller facilities.  At an installed system cost in the range of $50-100,000 each, we believe the early release facilities market can develop into a significant new niche market segment for TSI PRISM.”

Alanco Technologies, Inc. (NASDAQ: ALAN), headquartered in Scottsdale, Arizona, is the developer of the TSI PRISM RFID continuous tracking system for the corrections industry, which tracks the location and movement of inmates and officers, resulting in significant prison operating cost reductions and enhanced officer safety and facility security.  Utilizing RFID (Radio Frequency Identification) tracking technology with proprietary software and patented hardware components, TSI PRISM provides real-time inmate and officer identification, location and tracking capabilities both indoors and out.  TSI PRISM is currently utilized in prisons in Michigan, California, Illinois, and Ohio. The Company also participates in the data storage industry through two subsidiary companies: Arraid, Inc., a manufacturer of proprietary storage products to upgrade older “legacy” computer systems; and Excel/Meridian Data, Inc., a manufacturer of Network Attached Storage (NAS) systems.

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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