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Alanco Awarded Multi-Year TSI PRISM Services Contract
For Michigan Juvenile Facility

(Scottsdale, AZ – April 12, 2006) – Alanco Technologies, Inc. (NASDAQ: ALAN), developer of the TSI PRISM RFID officer safety and inmate tracking system for the corrections industry, today announced that the Company has been awarded a three-year competitively bid contract by the State of Michigan Department of Management & Budget to provide extended support and services for a TSI PRISM system in operation at the W. J. Maxey School for Boys (Maxey) located in Whitmore Lakes, Michigan. The TSI PRISM system has been in operation at Maxey, a maximum security juvenile facility, since late 2002. The support contract, valued at approximately $315,000, is scheduled to begin in April 2006 and will include a subcontracting partnership with Ann Arbor Computer Systems, a Michigan-based company.

Robert R. Kauffman, Alanco’s Chairman and Chief Executive Officer, commented, “We are particularly pleased to provide continued service and support at the Michigan W. J. Maxey facility, since this installation marks the initial commercial utilization of TSI PRISM technology in the U.S.”

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 a high security youth treatment facility in Michigan and prisons in 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.ess Release text here...

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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