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Alanco Investor Relations
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Alanco Receives NASDAQ Notification
Relative to Series D Preferred Stock

(Scottsdale, AZ – August 4, 2008) – Alanco Technologies, Inc. (NASDAQ: ALAN), said today that it received a letter from NASDAQ on July 29, 2008, indicating that the Company was out of compliance with Marketplace Rule 4351 and IM-4351 (the “Rules”) concerning the issuance of 100,000 shares of Series D Preferred Stock. The terms of the Series D Preferred Stock included a provision entitling the investors to notification of any stockholders’ meeting and the right to vote with holders of its Class A Common Stock on any matters before them. The Series D Preferred Stock allowed the investors to vote “the number of votes equal to $10.00 divided by the NASDAQ closing market price for the Company’s Class A Common Stock on the record date for the stockholders meeting.” Since the number of votes was not limited, NASDAQ staff believed the Series D could be considered a “super voting” security and therefore resulted in a violation of the Rules.

The Company has amended the designation of the Series D Preferred Stock stating that its holders have seven votes per share. Accordingly, NASDAQ staff has determined that the Company has regained compliance with the Rules and, subject to the disclosure requirements, the matter is now closed.

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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