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 2 for 5 Reverse Stock Split -
                           Effective October 16, 2006

(Scottsdale, AZ - October 16, 2006) - Alanco Technologies, Inc. (NASDAQ: ALAN),
a leading provider of wireless tracking and asset management solutions, today
announced that the Board of Directors has elected to effect a 2 for 5 reverse
stock split that will be effective Monday, October 16, 2006, when the Company's
common stock will begin trading on a post split-adjusted basis under the interim
trading symbol "ALAND" for a period of 20 days, after which the Company's
trading symbol will return to "ALAN". The Company had previously received
authority from its shareholders to effect a reverse split at a ratio within a
specified range, if and as determined by the Board of Directors, in order to
maintain its Nasdaq listing.

As a result of the reverse stock split, each five shares of the Company's Class
A common stock outstanding at the time of the reverse split will be
automatically reclassified and changed into two shares of common stock, and the
total number of common shares outstanding will be reduced from approximately
38.7 million shares to approximately 15.5 million shares post-split. The reverse
stock split will result in a similar adjustment to the Company's outstanding
stock options and securities reserved for issuance under its current incentive
plans. No fractional shares will be issued in connection with the reverse stock
split and, upon surrender of their stock certificates, shareholders will receive
cash in lieu of the fractional shares to which they would otherwise be entitled.

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 Systems is the 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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