EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACTS: Investor Relations
ALANCO Technologies, Inc. ORBCOMM Inc.
John Carlson Lucas Binder
Exec VP & CFO VP Business Development and IR
480-505-4869 703-433-6505
Alanco and ORBCOMM Inc. Announce
Strategic Partnership
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$2.25 Million Equity Investment and Agreement to Develop New
Satellite-Based Products
(April 7, 2010) - Alanco Technologies, Inc., (NASDAQ: ALAN) and ORBCOMM Inc.
(NASDAQ: ORBC), today announced a major strategic investment by ORBCOMM, a
global satellite data communications company focused on two-way
Machine-to-Machine (M2M) communications and leading provider of space-based
Automatic Identification System (AIS) services. ORBCOMM purchased 500,000 shares
of Alanco Series E Convertible Preferred Stock for a total investment of
$2,250,000 ($4.50 per preferred share convertible into 12 common shares), and
entered into a Product/Software Development Cooperation Agreement for Alanco's
StarTrak Systems subsidiary to develop, manufacture and market new products
featuring dual-mode cellular and ORBCOMM satellite communications capabilities,
to operate over the global ORBCOMM communications networks.
Robert Kauffman, Alanco Chairman & CEO, commented, "This strategic partnership
with global wireless communications leader ORBCOMM Inc. represents a major
milestone towards achieving our growth objectives. We welcome ORBCOMM as a
significant new Alanco shareholder, as their $2.25 million investment
significantly enhances our overall financial strength and industry competitive
position. The Product/Software Development Cooperation Agreement will serve to
accelerate StarTrak's growth in both its primary refrigeration transportation
business and new, large potential market applications such as aftermarket
construction equipment monitoring. We are also looking forward to cooperative
development of new international opportunities through ORBCOMM's extensive
global network."
"The new product development program will greatly enhance StarTrak's continuing
efforts in providing strong ROI-driven applications to global customers via
best-in-class communications networks", said Tim Slifkin, President and Founder
of StarTrak. "We are positioning our products and services to take advantage of
the ORBCOMM satellite network's next generation constellation and cost
effectiveness."
Marc Eisenberg, ORBCOMM Chief Executive Officer, added, "In recent years,
StarTrak's innovative wireless monitoring technology has achieved refrigeration
transport industry leadership and StarTrak has grown to become a solid customer
for ORBCOMM communication services, both GSM and satellite. We now look forward,
as a significant new shareholder and active partner, to assist in accelerating
StarTrak product deployments and the associated ORBCOMM service revenues."
About ORBCOMM, Inc.
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ORBCOMM is a leading global satellite data communications company, focused on
Machine-to-Machine (M2M) communications. Its customers include Caterpillar,
Inc., Doosan Infracore American, Hitachi Construction Machinery, Hyundai Heavy
Industries, I.D. Systems, Inc., Komatsu Ltd., Manitowoc Crane Companies, Inc.
and Volvo Construction Equipment among other industry leaders. ORBCOMM is the
leading commercial provider of global AIS data from space, with users that
include the U.S. Coast Guard, U.S. Navy, U.S. Department of Transportation, U.S.
Customs and Border Protection and IHS Fairplay, among other government and
commercial organizations. By means of a global network of low-earth orbit (LEO)
satellites and accompanying ground infrastructure, ORBCOMM's low-cost and
reliable two-way data communication services track, monitor and control mobile
and fixed assets in four core markets: commercial transportation; heavy
equipment; industrial fixed assets; and marine/homeland security. ORBCOMM based
products are installed on trucks, containers, marine vessels, locomotives,
backhoes, pipelines, oil wells, utility meters, storage tanks and other assets.
ORBCOMM is headquartered in Fort Lee, New Jersey and has its network control
center in Dulles, Virginia. For more information, visit www.orbcomm.com.
Forward-Looking Statements
Certain statements discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements generally relate to our plans, objectives
and expectations for future events and include statements about our
expectations, beliefs, plans, objectives, intentions, assumptions and other
statements that are not historical facts. Such forward-looking statements,
including those concerning ORBCOMM's expectations, are subject to known and
unknown risks and uncertainties, which could cause actual results to differ
materially from the results, projected, expected or implied by the
forward-looking statements, some of which are beyond ORBCOMM's control, that may
cause ORBCOMM's actual results, performance or achievements, or industry
results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. These
risks and uncertainties include but are not limited to: the impact of global
recession and continued worldwide credit and capital constraints; substantial
losses we have incurred and expect to continue to incur; demand for and market
acceptance of our products and services and the applications developed by our
resellers; loss or decline or slowdown in the growth in business from Asset
Intelligence, a subsidiary of I.D. Systems, Inc. ("AI") (formerly a division
of General Electric Company ("GE" or "General Electric")), other value-added
resellers or VARs and international value-added resellers or IVARs; loss or
decline or slowdown in growth in business of any of the specific industry
sectors ORBCOMM serves, such as transportation, heavy equipment, fixed assets
and maritime; litigation proceedings; technological changes, pricing pressures
and other competitive factors; the inability of our international resellers to
develop markets outside the United States; market acceptance and success of our
Automatic Identification System ("AIS") business; the inability to provide AIS
service due to the in-orbit satellite failure of the remaining two quick-launch
satellites; satellite launch and construction delays and cost overruns of our
next-generation satellites; in-orbit satellite failures or reduced performance
of our existing satellites; the failure of our system or reductions in levels of
service due to technological malfunctions or deficiencies or other events; our
inability to renew or expand our satellite constellation; political, legal
regulatory, government administrative and economic conditions and
developments in the United States and other countries and territories in which
we operate; and changes in our business strategy.; and the other risks described
in our filings with the Securities and Exchange Commission. Unless required by
law, we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
For more detail on these and other risks, please see our "Risk Factors" section
in our annual report on Form 10-K for the year ended December 31, 2009.
Alanco Technologies, Inc. provides wireless monitoring and asset management
solutions through its StarTrak Systems subsidiary. StarTrak Systems is the
dominant provider of tracking, monitoring and control services to the
refrigerated or "Reefer" segment of the transportation marketplace, enabling
customers to increase efficiency and reduce costs of the refrigerated supply
chain. For more information, visit the Alanco website at www.alanco.com or
StarTrak Systems at www.startrak.com.
EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS
RELEASE ARE FORWARD-LOOKING STATEMENTS MADE BY ALANCO 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 THAT 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 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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