Contact:	John Carlson Exec VP & CFO (480) 505-4869	Lippert/Heilshorn & Associates Harriet Fried (212) 838-3777

Alanco's StarTrak Systems
Adds 18 New Fleet Accounts

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Reefer Market Penetration Accelerates In Down Economy

(Scottsdale, AZ – July 7, 2009) - Alanco Technologies, Inc., (NASDAQ: ALAN), announced today that its StarTrak Systems subsidiary, the leading provider of wireless monitoring and two-way control systems for the refrigerated transport industry, added 18 new fleet customers that collectively operate over 3,000 refrigerated trucks and trailers in the quarter ending June 30, 2009. More than 125 refrigerated transport customers now subscribe to StarTrak’s comprehensive reefer monitoring and management services. StarTrak’s five-year customer retention rate for subscription data services is virtually 100%.

Tim Slifkin, President of StarTrak Systems, noted, “We continue to see strong growth for our reefer monitoring services despite the weakness in the economy. In fact, we have more demonstration trials ongoing with potential new customers than at any time in our history. The new customers we added in the April-June quarter include a broad cross section of carriers in both food and pharmaceutical distribution. This is a strong affirmation of StarTrak’s capability to meet the varied needs of each refrigerated transport segment and of the strong value proposition that the ReeferTrak® system provides the entire industry.”

StarTrak’s new customer additions include the following companies:
 Alpha Transport – Salt Lake City, Utah
 Cargo Transport Services – Union City, New Jersey
 Cheney Brothers, Inc. – Riviera Beach, Florida
 Harrison Company – Harrison, Arkansas
 Heiter Truck Line, Inc. – Spencer, Iowa
 ICS Logistics – Jacksonville, Florida
 JT Davenport & Sons, Inc. – Sanford, North Carolina
 Liberty, USA – West Mifflin, Pennsylvania
 McEwen Trucking – Corunna, Michigan
 Missabay Foods – Swedesboro, New Jersey
 New Century Transportation – Westhampton, New Jersey
 Pegasus Transportation – Louisville, Kentucky
 Seaboard Foods – Shawnee Mission, Kansas
 Smith Trucking – Worthington, Minnesota
 Southwest Traders – Temecula, California
 Train Trailer – Mississauga, Ontario
 Van Kampen Trucking – Grand Rapids, Michigan
 White Arrow – Ontario, California


Alanco Technologies, Inc. provides wireless tracking and asset management solutions through its StarTrak Systems and Alanco/TSI PRISM subsidiaries. StarTrak Systems is the dominant provider of tracking, monitoring and control services to the refrigerated or “Reefer” segment of the transportation marketplace, enabling customers to increase efficiency and reduce costs of the refrigerated supply chain. Alanco/TSI PRISM is the leading provider of RFID real-time tracking technologies for the corrections industry. Its systems track and record the location and movement of inmates and officers, enhancing safety, security and productivity. For more information, visit the company’s website at www.alanco.com.
 

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.