||Alanco Investor Relations
Alanco Announces New $2.5 Million Financing
(Scottsdale, AZ – August 14, 2008) – Alanco Technologies, Inc., (NASDAQ: ALAN), today announced new financing totaling $2.5 million, comprising $2.0 million of additional equity from the sale of non-convertible Series D Preferred Stock, and a $0.5 million increase in the Company’s current credit line. Company directors and officers will be the primary investors in the new financing, expected to be completed by August 22, 2008.
$1.4 million of the proceeds will be used to pay down a term note with a current balance of approximately $2.4 million, with the remaining $1.1 million to provide additional working capital.
Robert R. Kauffman, Alanco Chairman and Chief Executive Officer, commented, “While these are obviously challenging times in which to raise new capital, this $2.5 million insider financing plan is non-dilutive and will benefit all Company shareholders as our new fiscal year profitability turnaround proceeds on schedule. We are gratified that our board and senior management are again enthusiastically endorsing the Company’s business plan and future prospects through this additional significant investment. The new financing will eliminate substantial current monthly term note repayment obligations, and provide $1.1 million of additional working capital to fund accelerating sales growth in our TSI PRISM and StarTrak businesses.”
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.