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Alanco Investor Relations
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Alanco Preliminary Fourth Quarter Results


First Quarter Guidance

(Scottsdale, AZ – July 24, 2008) - Alanco Technologies, Inc., (NASDAQ: ALAN), today announced that preliminary, unaudited sales revenues for its fourth quarter period ending June 30, 2008, were $4,700,000, an increase of 40% compared to the prior fiscal year fourth quarter and a 13% increase from the previous quarter. Operating loss for the fourth quarter will narrow compared to the prior year fourth quarter and the previous third quarter, but less than anticipated due to unusually high year-end inventory adjustments caused by new product introductions.

Accelerated sales growth and operating improvement is projected for the Company’s fiscal year 2009 first quarter, which began July 1, 2008, based on Alanco/TSI PRISM’s current large contract backlog and increasing demand for StarTrak’s refrigerated transport monitoring services. The Company expects total sales revenues to exceed $7,500,000 for the first quarter with a near-breakeven operating result and positive EBITA.

Robert R. Kauffman, Chairman and Chief Executive Officer, commented, “We continue to be on track for a complete turnaround in our new fiscal year 2009. TSI PRISM has turned profitable, and is poised for extraordinary growth following years of patient investment, unique technical achievements and pioneering market development. StarTrak is realizing increased demand for its new Sentry® product line, capitalizing upon a recently introduced [Alanco news release dated June 25, 2008] fuel savings module providing immediate, significant fuel savings for reefer fleet operators. Along with expectation of record first quarter performance, we are confident that we can successfully execute our fiscal year 2009 turnaround plan.”

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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