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Alanco TSI PRISM™ Wins Virginia Prison Project
Pilot Project With Annually Renewable Contract Format Intended to
Facilitate Additional Deployment Throughout State’s 42 Correctional Facilities
(Scottsdale, AZ - December 8, 2005) - Alanco Technologies, Inc. (NASDAQ: ALAN), developer of the TSI PRISM Radio Frequency Identification (RFID) officer duress and inmate tracking system for the corrections industry, announced today that the Company has been selected to provide a TSI PRISM system for installation at the Marion Correctional Treatment Center by the Virginia Department of Corrections (VDOC). Final terms of the contract, valued in the range of $600,000, are in negotiation but are expected to be completed before year end with construction expected to commence soon thereafter.
In April, 2005, Alanco responded to a Request for Proposal (RFP) published by the VDOC to procure an RFID tracking system for the 230-bed Marion Center, a psychiatric facility housing male felons. One of the VDOC’s primary objectives for this pilot project is to evaluate the performance and benefits of RFID tracking for possible future utilization in the VDOC’s larger facilities. The contract resulting from the RFP will be annually renewable for seven one-year periods, facilitating fast-track procurement for additional VDOC facilities. VDOC operates 42 correctional facilities housing over 34,000 inmates. Two additional prisons are in the planning and design phase.
Robert R. Kauffman, Alanco’s Chairman and Chief Executive Officer, commented, “The Virginia Department of Corrections conducted a very thorough due diligence process involving site visits, including the Logan Correctional facility in Illinois, which is our largest TSI PRISM installation to date. We believe this Marion Center installation will showcase TSI PRISM enhanced safety and cost reduction benefits, and coupled with fast-track procurement contract provisions, will accelerate the expansion and use of TSI PRISM throughout the Commonwealth’s correctional facilities.”
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 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. TSI PRISM is currently utilized in prisons in Michigan, California, Illinois, and Ohio. 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.
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.