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Alanco's StarTrak Announces
New ReeferTrak® Scout RFID Product Line
For Local Refrigerated Food Distribution

(Scottsdale, AZ – September 7, 2006) – Alanco Technologies, Inc. (NASDAQ: ALAN), a leading provider of wireless tracking and asset management solutions, today announced that its StarTrak Systems subsidiary has commenced the initial commercial deployment of the new ReeferTrak® Scout RFID product line designed specifically for localized food distribution fleets, including fast food, dairy and grocery operations. Two Los Angeles-area food distributors have recently purchased and deployed the new ReeferTrak Scout units and base stations at their distribution centers.

ReeferTrak Scout is an RFID wireless communications system that gives users full two-way command and control capability of their refrigerated truck and trailer fleets when the units are within a several mile range of a base station-equipped distribution center. When the “reefers” are operating out of range of the distribution center, the Scout unit logs GPS, trip and refrigeration unit performance data and automatically downloads the information to StarTrak’s central data center via the local base station upon return to the center. Customers use the data to immediately confirm temperature compliance of the shipment from origin to destination. The base stations’ several mile RFID range provides excellent coverage of distribution facilities, allowing customers to achieve significant savings in yard operations, fuel usage and product quality.

Tom Robinson, StarTrak’s Executive Vice President, commented, “StarTrak is excited to introduce the ReeferTrak Scout system for the localized refrigerated transport market, an opportunity in excess of 150,000 systems nationally. With this new, economical, RF-based communications solution for the local food distribution market, ReeferTrak Scout further solidifies StarTrak’s position as the leading wireless solutions provider to the refrigerated transport industry.”

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 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 tracking, monitoring and controlling 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. TSI PRISM is currently utilized in prisons in Michigan, California, Illinois, Ohio, and Missouri. Additional information is available at www.TSIPRISM.com.

The Company also participates in the data storage industry through two subsidiary companies: Arraid, Inc., a manufacturer of proprietary storage products to upgrade older “legacy” computer systems; and Excel/Meridian Data, Inc., a manufacturer of Network Attached Storage (NAS) systems.

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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