ALANCO ENVIRONMENTAL RESOURCES CORPORATION


     FOR IMMEDIATE RELEASE

     CONTACT:  Alanco Environmental Resources Corporation
               (602) 607-1010

        ALANCO LETTER OF INTENT TO ACQUIRE ASI COMMUNICATIONS, INC.

      Combined companies to focus on growth of ASI's  internet and IP
                       telephony business segments. 

     (Scottsdale, AZ _ April 30, 1999) _ ALANCO ENVIRONMENTAL
     RESOURCES CORPORATION (NASDAQ:ALAN) announced today that it has
     signed a Letter of Intent to acquire ASI Communications, Inc.
     (ASI), a Tempe, Arizona company with 1998 sales of approximately
     $5.6 million, and operating in three telecommunications-related 
     business segments:  internet access services, IP telephony
     (telecommunications utilizing internet technologies), and
     security alarm monitoring.  The proposed acquisition will be a
     stock exchange transaction, with ASI shareholders owning
     approximately 45% of Alanco's outstanding stock at the close.

     The combined company's strategic objective will be to accelerate
     growth of the ASI internet business segments _ internet access
     services, and IP telephony.  A supporting plan will be to divest
     non-strategic business assets and redeploy this capital into the
     high growth potential internet businesses.  It is anticipated
     that, upon completion, the name of the company will be changed to
     reflect the new strategic focus.  

     Robert R. Kauffman will continue as Chairman and Chief Executive
     Officer.  Kay C. Zahn, currently President of ASI Communications,
     Inc., will be appointed President of the new company.  The
     proposed transaction will require approval of both Alanco and ASI
     shareholders.

     Alanco Environmental Resources Corporation is an Arizona
     corporation headquartered in Scottsdale, Arizona, primarily
     engaged in environmental products businesses.  Alanco is traded
     on the NASDAQ stock market under the symbol ALAN.

     THIS PRESS RELEASE CONTAINS STATEMENTS THAT MAY BE CONSIDERED
     FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE
     SECURITIES LITIGATION REFORM ACT OF 1995.  SUCH FORWARD-LOOKING
     STATEMENTS ARE INHERENTLY UNCERTAIN, AND THE ACTUAL RESULTS MAY
     DIFFER FROM MANAGEMENT'S EXPECTATIONS. 

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