Inmate tracking technology proves effective in early detection of an escape
and in determining the identity of an inmate assailant.

Scottsdale, AZ - August 1, 2002 - Alanco Technologies, Inc. (NASDAQ: ALAN) announced today that the TSI PRISM wireless prison safety and inmate tracking system -- manufactured and marketed by its wholly owned subsidiary, Technology Systems International, Inc. (TSI) -- has successfully completed a comprehensive, 90-day testing program conducted by the California Department of Corrections (CDC).

In an effort to evaluate the capabilities of the TSI PRISM wireless inmate tracking system, the CDC proposed that the technology be installed at California State Prison, Calipatria. The evaluation process included a 90-day CDC test to assess the accuracy and operational features of the TSI PRISM system. The confidential results of the testing program were recently made available to the company. The CDC report concluded: “During the 90-day test period, multiple tests of the operational features of the PRISM system’s hardware and software were conducted. The system and all the related components passed all test protocols during the entire test period.”

The CDC testing report includes the following highlights:

• The TSI PRISM system aided in the early detection of an escape attempt, resulting in the inmate’s capture within one-and-a-half hours;
• The system accurately determined the identity of an inmate assailant;
• The system successfully resisted inmate attempts to tamper with or otherwise defeat the system;
• The system provided a continuous inmate headcount at two second intervals, proved effective in reducing staff time required to complete headcounts and readily identified officers and their specific locations whenever a duress alarm was initiated.

Greg M. Oester, President of TSI, stated: “We’re delighted, but not surprised, that the TSI PRISM system passed the testing program with flying colors. The Calipatria system has performed exceptionally well for the past eighteen months. In fact, the CDC has permitted us to use the Calipatria site for product demonstrations, and a number of sales occurred after customers experienced the system in operation first hand.”

“We are also encouraged by comments from inmates who acknowledge that they’re aware they will be held accountable for their behavior because of the monitoring provided by the TSI PRISM system. Officers and inmates alike credit the system with providing a safer environment inside the prison, and we anticipate the ability to quantify a dramatic reduction in inmate violence over time. We are gratified that our system concept, reliability and accuracy have all been confirmed by this test program.”

About Alanco Technologies, Inc.
Alanco Technologies, Inc. (NASDAQ: ALAN) is a provider of advanced information technology solutions with a strategic focus upon RFID (Radio Frequency Identification) tracking technology through the acquisition of Technology Systems International, Inc. (TSI) in May 2002. TSI has developed a state-of-the-art wireless RFID tracking technology featuring proprietary software and patented hardware components, marketed as the TSI PRISM system. The TSI PRISM system is utilized for area security management and personnel monitoring with present market focus on the corrections industry, where the system provides continuous, real-time prison inmate and officer identification and tracking capabilities indoors and out. TSI PRISM enhances staff safety and facility security; deters inmate violence; and provides the correctional industry with operational cost reductions and unique inmate management capabilities. Alanco 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.