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Alanco Signs Cooperative Marketing Agreement with SAIC


Agreement Expected to Speed Widespread Adoption of
TSI PRISM™  RFID Tracking Technology In Nation’s Prison Systems

(Scottsdale, AZ - April 1, 2004) - Alanco Technologies, Inc. (NASDAQ: ALAN) developer of the TSI PRISM RFID inmate tracking system for the corrections industry, today announced a cooperative marketing agreement with Science Applications International Corporation (SAIC) to jointly develop new federal and state market opportunities for Alanco’s proprietary TSI PRISM technology. 

Under terms of the agreement, the parties plan to pursue targeted federal and state correctional opportunities offering maximum benefit from a TSI PRISM deployment as measured by potential cost savings, reduced inmate violence and enhanced officer safety.  SAIC also will provide appropriate lobbying support, as well as be involved in a broad range of contract implementation services, including financing, project management, on-site installation, staff training and warranty service.  Initially, two Alanco / SAIC proposals totaling $6.5 million have been submitted to California for a 2,300 inmate prison and a 1,800 inmate women’s facility.  Two additional proposals are in process and expected to be submitted in the near future.

“SAIC is pleased to be working with Alanco to help improve the overall safety and management of our nation’s prison systems,” said Craig Lewis, SAIC corporate vice president.

Robert R. Kauffman, Alanco chairman and CEO, commented, “We anticipate that our new agreement with SAIC can provide essential ingredients to accelerate our TSI PRISM market development activities.  In addition to invaluable assistance in the complex federal and state government procurement process, SAIC’s extensive systems installation/integration and project management experience can provide crucial support as the scale of our business evolves to multiple, simultaneous project executions.  We are optimistic that this new Alanco / SAIC effort can provide the final “lift-off” required to establish TSI PRISM as a new standard of inmate management and officer safety for the nation’s prisons.”

About SAIC
SAIC is the nation's largest employee-owned research and engineering company, providing information technology, systems integration and eSolutions to commercial and government customers.  SAIC engineers and scientists work to solve complex technical problems in national and homeland security, energy, the environment, space, telecommunications, health care, and logistics.  With annual revenues of $5.9 billion, SAIC and its subsidiaries, including Telcordia Technologies, have more than 43,000 employees at offices in more than 150 cities worldwide.  More information about SAIC can be found at www.saic.com.

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 dramatically 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.  The TSI PRISMsystem is currently utilized in prisons in Michigan, California and Illinois.

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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