Alanco Announces New TSI PRISM Product To Address Sexual Abuse Problem In Nation's Women's Prisons.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--March 11, 2003

Alanco Technologies, Inc. (NASDAQ: ALAN), responding to prison administrators and legislators concerned about the problem of violence and sexual abuse in women's prisons, today announced introduction of the PSD-II(TM), a belt-worn, officer/staff transmitter for its TSI PRISM(TM) RFID tracking system featuring proprietary anti-tampering capabilities which will automatically detect and record any occurrence of removal of the staff transmitter. This allows investigators to review the data record for any evidence that would tend to support or invalidate an inmate's claim of staff misconduct.

According to Bob Kauffman, Alanco Chairman and CEO, "We already have data indicating that the TSI PRISM system reduced incidents of prison violence by approximately 65% in a two-year pilot test in Calipatria, California. Given the enhancements we have made to focus specifically on the problem of violence and sexual abuse of women, we are confident that TSI PRISM with the PSD-II will not only provide an invaluable tool for investigators, but will proactively deter inappropriate behavior, resulting in dramatic reductions in sexual abuse allegations. If someone turns in a complaint against a staff member, the prison administrator can go to the system archive to find out where everyone involved in the alleged incident was, whom they were with, and for how long. Prison administrators can quickly determine when false allegations implicate a staff person who was not where an inmate said that person was, or provide initial corroboration of a genuine claim that requires further investigation."

The company said that it has been contacted by administrators at several large state women's prisons seeking a technology solution to combat this problem, which in several states has resulted in lawsuits filed by inmates alleging staff abuse. In June 2002, a bill sponsored by Senators Sessions and Kennedy was introduced to address the issue of prison rape and how to prevent it.

Kauffman pointed out that allegations of rape or sexual abuse against prison staff, whether factual or not, "are a huge and growing drain on state resources. The investigation is expensive, time consuming, damaging to staff morale, and in many cases, significant settlements are paid to resolve these claims."

Kauffman also added, "When leased with highly attractive terms presently being offered to state governments, the TSI PRISM system can actually result in reducing the cost of operating today's women's prisons -- a very significant bonus in the current economic climate."

Alanco Technologies, Inc. (NASDAQ: ALAN), headquartered in Scottsdale, Arizona, is the developer of the TSI PRISM RFID continuous tracking system for the corrections industry, which tracks the location and movement of inmates and officers, resulting in significant prison operating cost reductions and dramatically enhanced officer safety and facility security. Utilizing RFID (Radio Frequency Identification) tracking technology with proprietary software and patented hardware components, TSI PRISM provides real-time inmate and officer identification, location and tracking capabilities both indoors and out. The TSI PRISM system is currently utilized in prisons in Michigan and California, and a new 2,000-bed medium-security prison in Illinois is scheduled to be commissioned in late March. 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.

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