||Alanco Investor Relations
Alanco Announces Cooperation with NTT Data
To Develop New TSI PRISM™ Markets In Japan
Exclusive Agreement for New RFID Applications Non-Exclusive for Corrections Market
(Scottsdale, AZ - April 4, 2005) - Alanco Technologies, Inc. (NASDAQ: ALAN) announced today it has entered into a Letter of Intent with Japan’s NTT Data Corporation (“NTT Data”) granting exclusive rights to develop new market applications in Japan for Alanco’s TSI PRISM RFID tracking technology, and non-exclusive distribution rights for the Japanese corrections market. A definitive agreement is expected to be completed by May 15, 2005, and will include significant financial commitment to Alanco in consideration of rights granted.
NTT Data is a part of the NTT Group of Companies and is recognized as Japan’s largest systems integrator. A world leader in information and networking technologies, NTT Data enjoys a major share of the Japanese security systems market, including restricted access government installations. NTT Data employs over 17,000 persons with annual sales revenue of over $8 billion USD.
Alanco’s Chairman and Chief Executive Officer, Robert Kauffman, commented, “Today’s announcement follows our March 30, 2005 news release of a Strategic Marketing Agreement Letter of Intent with NEC Corporation of Japan. These two important relationships will form the cornerstone of our TSI PRISM market development efforts in Asia. The relationship with NTT Data Corporation is a direct result of NTT Data’s vision of new high growth applications for our unique and proprietary RFID tracking technology. We are excited by the potential for expanding TSI PRISM market opportunities beyond corrections through this cooperation with a world leader in security systems and technology innovations.”
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 a new Ohio installation. 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.