FOR IMMEDIATE RELEASE

CONTACTS:  Alanco Investor Relations          Equity Communications
           (480) 607-1010                     Ira Weingarten
           www.alanco.com                     (805) 897-1880
                                              ira@equitycommunication.com

                        Alanco Regains NASDAQ Compliance

(Scottsdale, AZ - November 2, 2006) - Alanco Technologies, Inc. (NASDAQ: ALAN)
today announced that it has received notification from NASDAQ that the Company
is in full compliance with all requirements for continued listing on the NASDAQ
Capital Market.

Alanco previously reported on August 4, 2006, that the Company had received a
Staff Determination letter from NASDAQ indicating that the Company failed to
comply with the minimum $1.00 per share bid price requirement for continued
listing. Following the Company's October 16, 2006, reverse split, the Company
remedied the minimum bid price deficiency, meeting a NASDAQ requirement that the
Company's stock must have a closing bid price of $1.00 or higher for 10
consecutive trading days.

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
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StarTrak Systems is a 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 its
Excel/Meridian Data, Inc. subsidiary, a manufacturer of Network Attached Storage
(NAS) systems. Additional information is available at www.excelmeridian.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.

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