EXHIBIT 99.1

             ALANCO COMPLETES DIVESTITURE OF TSI PRISM SUBSIDIARY;
           REFOCUSED ALANCO/STARTRAK ON PACE TO GROW OVER 35% IN FY11
            WITH REVENUES EXCEEDING $20 MILLION AND POSITIVE EBITDA



(SCOTTSDALE,  AZ  -  AUGUST  18,  2010)-  ALANCO  TECHNOLOGIES,  INC.(NASDAQ:
ALAN),today announced completion of its strategic asset divestiture program with
the  sale  of  subsidiary Alanco/TSI PRISM, Inc. located in Scottsdale, Arizona.
The  assets  and  business  of  TSI  PRISM,  a  provider of RFID inmate tracking
technology  to  the  corrections market, was purchased by Black Creek Integrated
Systems, a private company located in Irondale, Alabama.  The transaction, which
closed  on August 17, 2010, consisted of approximately $2 million in cash, and a
potential  earn-out  valued  in  the  range  of  $0.5  to  1.0  million.

The TSI PRISM sale, coupled with the previously announced March 19, 2010 sale of
the  Company's  data  storage  subsidiary, marks the completion of the Company's
asset divestiture program and re-deployment of resources to focus upon growth of
the  Company's  StarTrak  wireless  asset  management business.  The divestiture
program  significantly  improved Alanco's financial position by reducing secured
debt  and  eliminating  the  large operating losses associated with the divested
businesses,  which  in  the  last  fiscal  year  alone, totaled over $1,700,000.

Alanco's  forward  strategic  plan  is  to focus exclusively on growing the high
margin,  recurring  revenue  monitoring  business  of  our  StarTrak subsidiary,
acquired  July 1, 2006.  Since acquisition, StarTrak's sales have increased from
approximately  $7  million  to  $14.5  million  in  fiscal year 2010 with fourth
quarter  sales  accelerating  to  a  30%  increase  over  the prior year period.
Improved  gross  profit  margins  have  significantly  contributed to StarTrak's
turnaround  to current positive EBITDA performance.  During the past six months,
StarTrak's sales organization has also been reorganized and revitalized with the
additions  of  industry-experienced  regional  sales  representatives,  and new,
professional  sales  management.

Based  upon current high pipeline activity, and new opportunities resulting from
the  Qualcomm  marketing  agreement  announced  July  22,  2010, Alanco/StarTrak
anticipates  accelerated sales growth in fiscal year 2011 to exceed $20 million,
a  35%  plus increase over fiscal year 2010.  Fiscal year 2011 performance is on
track to deliver significant positive EBITDA, and a net operating income for the
second  half  of  the  year.

Robert R. Kauffman, Alanco Chairman and CEO, commented, "The new Alanco/StarTrak
is  now  focused solely on the exceptional growth and profitability potential of
our  wireless asset management business, which is experiencing increasing demand
for  its  state-of-the-art  refrigerated  transport  monitoring  technology.
Additional  strategic  initiatives  in support of our restructured business plan
include  a  planned corporate name change, further debt restructuring/reduction,
and  consideration  of other corporate strategic alternatives.  We are committed
to  restoring  shareholder  value  in  the  new  company  and  look forward to a
productive  new  fiscal  year  2011."

ALANCO  TECHNOLOGIES,  INC.  provides  wireless  monitoring and asset management
solutions  through  itsStarTrak  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  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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