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Ira Weingarten

Alanco's TSI PRISM™ Wins Ohio RFP

Pilot Installation at Ohio’s Ross Correctional Facility
To Demonstrate New Inmate Management & Officer Safety System

(Scottsdale, AZ - June 7, 2004) - Alanco Technologies, Inc. (NASDAQ: ALAN) announced today that it was selected by the Ohio Department of Rehabilitation and Correction (ODRH) to provide its TSI PRISM RFID inmate tracking and officer safety system for a pilot project at the Ross Correctional Facility in Chillicothe, Ohio.  ODRH currently operates thirty-three adult facilities collectively housing approximately 44,000 inmates, and the TSI PRISM technology will be evaluated for potential application throughout the Ohio prison system.  The final contract award is subject to approval by the Ohio Controlling Board, which is expected in the near future. 

Alanco Chairman and CEO, Robert R. Kauffman, said, “The Ross pilot project represents a significant milestone toward penetration of the large potential Ohio market for our RFID tracking technology.  We look forward to this opportunity to establish TSI PRISM as a new standard for inmate management and officer safety in the Ohio prison system.”

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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