FOR IMMEDIATE RELEASE

CONTACTS:   Alanco Investor Relations              Equity Communications
            (480) 607-1010                         Ira Weingarten
            www.alanco.com                         (805) 897-1880
                                                   ira@equitycommunication.com

          Alanco Announces First Quarter Revenues to Exceed $5 Million

                      Triple Comparable Quarter Prior Year

(Scottsdale, AZ - October 16, 2006) - Alanco Technologies, Inc., Scottsdale, AZ
(NASDAQ: ALAN), a leading provider of wireless tracking and asset management
solutions, said today that it expects to report record revenues for the first
quarter, ended September 30, 2006, in excess of $5 million, compared to the $1.6
million reported for the comparable quarter a year earlier. The record first
quarter sales are attributable to contributions by the Company's Wireless Asset
Management business segment, created by the acquisition of StarTrak Systems,
LLC, ("StarTrak") on June 30, 2006. StarTrak is the world's leading supplier of
wireless tracking and asset management services for the "Reefer" (refrigerated
truck and railroad car) industry, and is enjoying an accelerated growth rate.

According to StarTrak President, Tim Slifkin, "Significant long-term investments
in new technologies have begun to pay off in larger contract wins." At the same
time, he said, "Recurring revenues continue to improve significantly as we add
units to our network." Slifkin attributed this success to the comprehensive
value model that StarTrak has created for its customers. "In essence, we provide
our customers with the ability to monitor and control their mobile assets
anywhere in the world, and if necessary, intervene in real-time should something
go awry."

Robert R. Kauffman, Alanco Chairman and Chief Executive Officer, commented, "We
expect our strong first quarter revenues will result in significantly improved
financial performance and now believe that FY2007 is truly shaping up as our
break-out year. Our primary turnaround vehicle will continue to be StarTrak
Systems, with their large current order backlog and recent, well-received new
product introductions, such as the RFID-based ReeferTrak(R) Scout and cellular
based ReeferTrak(R) Sentry. Also, we are confident that recent new sales
developments in our TSI PRISM wireless inmate tracking business will finally
result in significant FY2007 financial contributions from this pioneering
developer of RFID real-time tracking technologies."

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 is a leading provider of GPS tracking and wireless asset management
services to the transportation industry and the dominant provider of tracking,
monitoring and 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 tracking,
monitoring and controlling 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, and Virginia. Additional information is available at
www.TSIPRISM.com.

The Company also participates in the data storage industry through
Excel/Meridian Data, Inc., its wholly owned subsidiary, a manufacturer of
Network Attached Storage (NAS) systems.

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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