Pilot Contract for High Security Government Hazmat Monitoring Project

Alanco Technologies, Inc. announced today that its Alanco/TSI PRISM subsidiary has been awarded a pilot contract to develop, install and evaluate a new RFID tracking and monitoring system for management of certain hazardous materials stored in high security federal government facilities. The trial project will be based upon the Company's TSI PRISM RFID inmate tracking technology and custom designed to provide instantaneous tamper detection and movement of the target materials within large, physically complex storage facilities. Installation of the pilot RFID system is expected to be completed in December 2007, followed by a testing and evaluation period. Initial contract value is in the range of $100,000. Federal government security requirements preclude disclosure of further project information, including site location, timing and scale of potential full deployment.Greg M. Oester, president of Alanco/TSI PRISM, Inc., commented, "We are actively pursuing new applications for our unique TSI PRISM technology beyond our historical prison market. This new hazmat monitoring opportunity provides us entry to potentially large federal government security applications."

Alanco Technologies, Inc., 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