Alanco Awarded TSI PRISM Expansion Contract at Illinois' Logan Prison.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--April 28, 2004

Alanco Technologies Inc. (NASDAQ:ALAN) announced today that it was awarded a contract by the Illinois Department of Corrections to expand the present coverage area of the TSI PRISM RFID inmate tracking system at the Logan Correctional Facility in Lincoln, Ill. The original installation was completed and operational in early 2004. The new contract expands the facility RFID coverage to include a newly constructed commissary/medical complex. The expansion project is expected to be completed within the next 60 days.

According to Larry Sims, warden of the 50-acre Logan facility, "The TSI PRISM system has been smoothly incorporated into our operations and is already proving its value as a uniquely effective tool for investigating inmate incidents. The fact that we now have the capability to know exactly who was present and when, at any event anywhere in our facility, is beginning to make a serious impression on our inmate population."

Robert R. Kauffman, Alanco chairman and CEO, said, "Logan is presently our largest and flagship installation. The fact that Illinois has elected to expand their TSI PRISM deployment obviously reflects customer satisfaction and bodes well for our future plans to deploy TSI PRISM throughout the Illinois prison system."

Alanco Technologies Inc., with headquarters in Scottsdale, 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, California and Illinois.

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.