Alanco Investor Relations
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Equity Communications
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Ira Weingarten

Ohio Approves Alanco TSI PRISM™ Contract

(Scottsdale, AZ - July 27, 2004) - Alanco Technologies, Inc. (NASDAQ: ALAN) developer of the TSI PRISM RFID inmate tracking system for the corrections industry, announced today that the Ohio Controlling Board approved a contract authorizing the Ohio Department of Rehabilitation and Correction (ODRC) to acquire a TSI PRISM system for a pilot project at the Ross Correctional Facility in Chillicothe, Ohio.  ODRC currently operates thirty-three adult facilities collectively housing approximately 44,000 inmates.  The objective of the Ross/TSI PRISM pilot project will be to evaluate the technology for potential application throughout the Ohio prison system.  The TSI PRISM contract is valued at $415,000 with system installation expected to begin within thirty days.

Alanco Chairman and Chief Executive Officer, Robert R. Kauffman, commented, “The Ross project represents a significant milestone not only toward penetration of the large Ohio market for our TSI PRISM technology, but is also the first of several new contracts in final stages of award, primarily delayed due to protracted state procurement processes.  In the near term, we anticipate significant new contracts in at least three states, with numerous opportunities progressing rapidly in additional major targeted states.”

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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