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Ira Weingarten
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National Press Responds to News of Alanco
Contract with Los Angeles County Jail


(Scottsdale, AZ - May 17, 2005) - Alanco Technologies, Inc. (NASDAQ: ALAN) announced today that in response to numerous requests, the Company is providing a partial list of the various newspapers that published the May 15, 2005, article by Don Thompson of the Associated Press (“AP”) regarding a decision by the Los Angeles County Sheriff’s Department to purchase Alanco’s TSI PRISM™ RFID officer safety and inmate tracking technology for the L.A. County jail.  The article expands on the contract award press release issued by Alanco on May 15, 2005, which can be viewed at www.alanco.com/releases/051505.asp.

The Company confirms that at least fifteen leading regional newspapers have run the AP story thus far, including THE SAN JOSE MERCURY NEWS, THE LOS ANGELES TIMES, THE WASHINGTON POST, NEW YORK NEWSDAY, THE DETROIT FREE PRESS, SEATTLE TIMES, SALT LAKE CITY TRIBUNE, MIAMI HERALD, KANSAS CITY STAR and the FORT WORTH STAR TELEGRAM.  Dozens of local newspapers, as well as scores of television stations, including ABC, NBC and FOX affiliates, have also carried the story in markets scattered across the country.

Greg Oester, President of Alanco/TSI PRISM, Inc., stated, “We are gratified by the overwhelming news coverage which underscores the national interest in managing our prisons in a more cost effective and safer manner.” 

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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