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Alanco Investor Relations
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Alanco's StarTrak Receives 500 Unit Order
From Exel Transportation Services, Inc.

Exel's Refrigerated Intermodal Fleet
To Utilize Sentry ReeferTrak® Monitoring Systems

(Scottsdale, AZ – September 11, 2008) – Alanco Technologies, Inc. (NASDAQ: ALAN), disclosed today that its StarTrak Systems subsidiary has received an order from Exel Transportation Services, Inc. valued in excess of $750,000 for ReeferTrak® system hardware and five years of data subscription services. The two-way command and control monitoring systems are to be deployed on Exel’s existing 500 unit fleet of refrigerated intermodal trailers.

The ReeferTrak monitoring solution is particularly effective for Exel’s operations as its entire refrigerated trailer fleet is primarily transported by intermodal railcar and without company drivers. ReeferTrak’s geofencing capability automatically records the time and place that responsibility for the trailer changes hands during the shipment. Exel can thereby remotely monitor individual performance of each rail carrier, determine fuel use by carrier and manage shipment quality.

“We evaluated a number of systems and found that StarTrak’s was clearly superior for our operations,” said Joseph Garrity, General Manager - Refrigerated Intermodal. “Exel has unique refrigerated operations, and we frequently need to control and pre-trip systems remotely. Furthermore, the fuel management system that StarTrak offers provides significant savings in reefer fuel usage validation and dwell time management.”

“StarTrak has extensive experience providing refrigerated transportation monitoring services to the intermodal market segment,” said Tom Robinson, Executive Vice President of StarTrak. “Our system is oriented towards providing the customer with assurances that intermodal-based freight is delivered under the proper conditions and that the customer’s operating costs are controlled through the process.”

Exel Transportation Services, Inc. is the North American leader in contract logistics, providing customer-focused solutions to a wide range of industries including retail, consumer, technology, automotive, life sciences, chemical and industrial. Exel’s innovative supply chain solutions, skilled people and regional coverage, bring together all aspects of contract logistics in addition to a wide range of integrated, value-added and specialist services. Exel is a wholly owned entity of Deutsche Post World Net, the world’s leading logistics group. For more information, visit www.exel.com.

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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