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Alanco/TSI PRISM Awarded $850K
System Upgrade Project by Illinois DOC


Major RFID Tracking System Upgrade and Three-Year Service Agreement
For Illinois' Logan Correctional Facility

(Scottsdale, AZ – June 19, 2008) – Alanco Technologies, Inc., (NASDAQ: ALAN), announced today that its Alanco/TSI PRISM, Inc. subsidiary has been awarded a contract valued at $850,000 by the Illinois Department of Corrections (IDOC) to provide a major system upgrade and three years of extended maintenance on a TSI PRISM RFID inmate tracking system in operation since 2003 at the Logan Correctional facility located in Lincoln, Illinois. The new contract commences July 1, 2008, with an initial payment of approximately $300,000. Alanco/TSI PRISM will provide 2,000 new generation inmate wrist transmitters and 300 new staff belt-mounted transmitters employing advanced technology, requiring less maintenance, and providing greater transmission range. The new transmitters also feature an extended battery life approaching twenty-four months, and incorporate a new patented single strap closure mechanism, which reduces the enrollment/de-enrollment time per inmate by over 70%.

Greg M. Oester, Alanco/TSI PRISM President, stated, “The IDOC’s decision to upgrade the Logan system is a strong endorsement of the value proposition provided by the TSI PRISM inmate tracking system over the past five years. We are excited by the opportunity to further enhance the operational benefits of our RFID inmate management system at Logan through this major new system upgrade. This new Illinois project also increases our current contract backlog to approximately $6.0 million.”

Alanco Technologies, Inc. (NASDAQ: ALAN), headquartered in Scottsdale, Arizona, is a rapidly growing provider of wireless tracking and asset management solutions through its StarTrak Systems and Alanco/TSI PRISM subsidiaries. Corporate website: www.alanco.com

StarTrak Systems is a leading provider of GPS tracking and wireless asset management services to the transportation industry and the dominant provider of tracking, monitoring and two-way control services to the refrigerated or “Reefer” segment of the transportation marketplace. StarTrak products increase efficiency and reduce costs of the refrigerated supply chain through the wireless monitoring and control of critical Reefer data, including GPS location, cargo temperatures and Reefer fuel levels. StarTrak offers complete integrated solutions for refrigerated trailers, trucks, railcars, and containers. Additional information is available at www.StarTrak.com.

Alanco/TSI PRISM is the leading provider of RFID real-time tracking technologies for the corrections industry. TSI PRISM systems track and record the location and movement of inmates and officers, resulting in enhanced facility safety and security and significant staff productivity improvements. Utilizing proprietary RFID (Radio Frequency Identification) tracking technology, TSI PRISM provides real-time inmate and officer identification, location and tracking both indoors and out, and is currently utilized in prisons in Michigan, California, Illinois, Ohio, Missouri, Virginia, Indiana, and Minnesota. Additional information is available at www.TSIPRISM.com.

The Company also participates in the data storage industry through its wholly owned subsidiary, Excel Meridian Data, Inc. (EMD), which specializes in providing unique data storage, backup and disaster recovery solutions. EMD Storage product lines include: direct attached storage (DAS), network attached storage (NAS) and storage area network (SAN) solutions for any size business. In addition, EMD features partnerships with: EqualLogic, VMware, Microsoft, DoubleTake and other industry leading hardware and software solution providers. For more information visit: www.emdstorage.com

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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