Alanco Signs Cooperative Marketing Agreement with SAIC

Business Editors
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--April 1, 2004 
Agreement Expected to Speed Widespread Adoption of 
TSI PRISM(TM) RFID Tracking Technology In Nation's Prison Systems 
Alanco Technologies Inc. (NASDAQ: ALAN), developer of the TSI
PRISM RFID inmate tracking system for the corrections industry, today
announced a cooperative marketing agreement with Science Applications
International Corp. (SAIC) to jointly develop new federal and state
market opportunities for Alanco's proprietary TSI PRISM technology. 
Under terms of the agreement, the parties plan to pursue targeted
federal and state correctional opportunities offering maximum benefit
from a TSI PRISM deployment as measured by potential cost savings,
reduced inmate violence and enhanced officer safety. SAIC also will
provide appropriate lobbying support, as well as be involved in a
broad range of contract implementation services, including financing,
project management, on-site installation, staff training and warranty
service. Initially, two Alanco/SAIC proposals totaling $6.5 million
have been submitted to California for a 2,300 inmate prison and a
1,800 inmate women's facility. Two additional proposals are in process
and expected to be submitted in the near future. 
"SAIC is pleased to be working with Alanco to help improve the
overall safety and management of our nation's prison systems," said
Craig Lewis, SAIC corporate vice president. 
Robert R. Kauffman, Alanco chairman and CEO, commented, "We
anticipate that our new agreement with SAIC can provide essential
ingredients to accelerate our TSI PRISM market development activities.
In addition to invaluable assistance in the complex federal and state
government procurement process, SAIC's extensive systems
installation/integration and project management experience can provide
crucial support as the scale of our business evolves to multiple,
simultaneous project executions. We are optimistic that this new
Alanco/SAIC effort can provide the final 'lift-off' required to
establish TSI PRISM as a new standard of inmate management and officer
safety for the nation's prisons." 
About SAIC 
SAIC is the nation's largest employee-owned research and
engineering company, providing information technology, systems
integration and eSolutions to commercial and government customers.
SAIC engineers and scientists work to solve complex technical problems
in national and homeland security, energy, the environment, space,
telecommunications, health care, and logistics. With annual revenues
of $5.9 billion, SAIC and its subsidiaries, including Telcordia
Technologies, have more than 43,000 employees at offices in more than
150 cities worldwide. More information about SAIC can be found at
www.saic.com. 
Alanco Technologies Inc., headquartered in Scottsdale, Ariz., is
the developer of the TSI PRISM RFID continuous tracking system for the
corrections industry, which tracks the location and movement of
inmates and officers, resulting in significant prison operating cost
reductions and dramatically enhanced officer safety and facility
security. Utilizing RFID (Radio Frequency Identification) tracking
technology with proprietary software and patented hardware components,
TSI PRISM provides real-time inmate and officer identification,
location and tracking capabilities both indoors and out. The TSI PRISM
system is currently utilized in prisons in Michigan, California and
Illinois. 
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. 
CONTACT:
Alanco Technologies Inc., Scottsdale
Investor Relations, 480-607-1010
www.alanco.com 
or
Equity Communications
Ira Weingarten, 805-897-1880
equity@silcom.com
 
 
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