Alanco Environmental Resources Corp. Reports Fiscal Year 1999 Results.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 24, 1999--

Alanco Environmental Resources Corp. (Nasdaq: ALAN) Friday announced profitable results for its fiscal year ended June 30, 1999 compared to a substantial prior year loss.

The company reported net income of $121,300, or $.02 per share, for its fiscal year ended June 30, 1999, versus a net loss of $6.7 million, or $1.32 per share, in fiscal year 1998, which included non-recurring asset write-downs of $7.1 million.

Fiscal 1999 sales decreased 35% to $7.1 million, from $11.0 million in the prior year, primarily due to loss of the Wal-Mart/Fry Guy contract, which contributed over 55% of the company's total revenues in fiscal 1998. The Wal-Mart contract, which represented 95% of Fry Guy subsidiary sales in 1998, terminated during the first quarter of fiscal 1999.

The company's air pollution products subsidiary, Alanco Environmental Manufacturing Inc. ("AEMI"), reported record results for the fiscal year, based on a 10% sales revenue increase to approximately $5.0 million.

Alanco Chairman and Chief Executive Officer, Robert R. Kauffman, stated, "Considering our opening handicap, such as the Fry Guy debacle, we were pleased to have sufficiently recovered during the year to actually record a positive net income and also significantly improve our balance sheet.

"We are nearing completion of the corporate 'restructuring' efforts commenced by the new management team in August, 1998, and look forward to begin building the 'New Alanco' in the current millennium fiscal year."

Alanco Environmental Resources Corp. is an Arizona corporation headquartered in Scottsdale, primarily engaged in the environmental products business. Alanco is traded on the Nasdaq stock market under the symbol ALAN.

This press release contains statements that may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are inherently uncertain, and the actual results may differ from management's expectations. -0-

                 Alanco Environmental Resources Corp.
                 Consolidated Statement of Operations

                                  For the Twelve Months Ended June 30,
                                          1999            1998

Total Sales                             $7,084,400     $10,975,900
Cost of Goods Sold                      (3,763,900)     (5,099,400)

Gross Profit                             3,320,500       5,876,500
General and Administrative              (3,201,400)     (5,199,500)

Income from operations
 before impairment                         119,100         677,000
Asset Impairment Charges                         0      (5,257,800)

  Income (loss) from Operations            119,100      (4,580,800)
Other income                                 2,200        (274,200)

Net income (loss) before
 discontinued operations                   121,300      (4,855,000)
Loss on Discontinued Operations                 $0     $(1,800,000)

Net Income (loss)                         $121,300     $(6,655,000)


Earnings Per Share - Basic & Diluted(a)      $0.02          $(1.32)

Weighted Average Common Shares
& Equivalents Outstanding(a)
      -Basic                             5,016,085       5,050,683
      -Diluted                           6,143,118       5,050,683

(a) Earnings per share information has been restated to reflect a
   reverse stock split which was effected in May of 1998.