NASDAQ THE NASDAQ STOCK MARKET LISTING QUALIFICATIONS DEPARTMENT 9600 BLACKWELL ROAD ROCKVILLE, MD 20850 By Facsimile and First Class Mail April 11, 2005 Mr. John A. Carlson Chief Financial Officer Alanco Technologies, Inc. 15575 N 83rd Way, Suite 3 Scottsdale, AZ 85260 Re: Alanco Technologies, Inc. (the "Company") Nasdaq Symbol: ALAN Dear Mr. Carlson: On February 14, 2005, Staff notified the Company that its common stock failed to maintain a minimum bid price of $1.00 over the previous 30 consecutive business days as required by the Marketplace Rules of The Nasdaq Stock Market (the "Rule")1. Since then, the closing bid price of the Company's common stock has been at $1.00 per share or greater for at least 10 consecutive business days. Accordingly, the Company has regained compliance with the Marketplace Rule 4310(c)(4) and this matter is now closed. If you have any questions, please contact Jennifer Owen, Listing Analyst at (301) 978-8091. Sincerely, /s/ Cynthia T. Melo - ------------------- Cynthia T. Melo Director Nasdaq Listing Qualifications - ------------------------------ 1 Marketplace Rule 4310(c)(4).