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Ira Weingarten

Alanco Wins Technology Development/Supply Contract For European Prison Pilot

Alanco/AeroScout, Inc. Announce Partnership Agreement

(Scottsdale, AZ - April 6, 2005) - Alanco Technologies, Inc. (NASDAQ: ALAN) announced today it has been awarded a contract to develop and provide modified TSI PRISM inmate tracking technology for a prison pilot project in Europe.  The award winning technology solution combines Alanco’s TSI PRISM and AeroScout, Inc.’s WiFi-based Real Time Locating Services (“RTLS”) technology.

The pilot program, which consists of a four-company consortium, requires a wireless system transmitting over the European-approved 2.4 gigahertz (GHz) band rather than the 900 megahertz (MHz) band utilized in Alanco’s U.S.A. TSI PRISM installations.  AeroScout’s RTLS technology, which utilizes standard 2.4 GHz Wi-Fi wireless networks, proved to be an excellent match for the wireless system requirements.

The European project also marks the start of a formal partnership agreement between Alanco and AeroScout for Wi-Fi-based location and tracking solutions that meet the unique needs of the corrections market.  Under terms of the agreement, AeroScout has granted Alanco exclusive worldwide rights to distribute and create solutions based on AeroScout RTLS technology for the corrections market.

Alanco’s Chairman and Chief Executive Officer, Robert Kauffman, commented, “The pilot project will be invaluable as a European showcase for the new 2.4 GHz TSI PRISM technology.  This project will also mark our initial commercial utilization of the licensed AeroScout Wi-Fi-based technology, which we believe will provide a significant advantage in developing the international TSI PRISM market.”

About AeroScout, Inc.

Based in San Mateo, California, AeroScout is a world leader in providing enterprise visibility solutions that use standard Wi-Fi wireless networks to locate valuable assets and people in multiple environments.  Major markets for AeroScout’s RTLS solutions include health care, inventory control and logistics management applications.  For more information, please visit

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.


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