News Release

FOR IMMEDIATE RELEASE

StarTrak Integrates PLC4TRUCKS Tractor Identifier System from Hegemon Electronics, Inc.

(Morris Plains, NJ - May 1, 2008)- StarTrak Systems, a subsidiary of Alanco Technologies, Inc. (NASDAQ: ALAN), and the leader in transport refrigeration wireless monitoring and control systems, is pleased to announce the integration of StarTrak's ReeferTrak^® system with the PLC4TRUCK's tractor identification system from Hegemon Electronics. The integration allows ReeferTrak to automatically report, via wireless communications, the unique ID of the tractor when the refrigerated trailer is connected to it. This guarantees that the assigned tractor is picking up the correct Trailer, automatically, thus eliminating driver intervention and possible error. Within ReeferTrak's solution set, the function permits significant improvement in trailer utilization and efficiency for refrigerated operators that frequently drop trailers to be loaded or unloaded.

The Hegemon PLC4TRUCKS unit transmits a unique, programmable, digital ID number at customer-specified intervals. This signal is transmitted between the tractor and the trailer using the existing seven-pin wiring harness as the pathway. The signal is read by ReeferTrak, which records the connection between tractor and trailer. This connection is then included as part of the wireless data transmission from the trailer.

"This function enhances ReeferTrak's ability to capture the exact time stamp of trailer drop off and pick up activities for customers who perform significant drop and hook operations as part of their delivery process," said Tom Robinson, StarTrak's Executive Vice President. "Hegemon's PLC4TRUCKS device, combined with existing, comprehensive ReeferTrak functionality, enhances our customers' ability to accurately and completely measure their operational delivery cycles, saving fuel and tractor/trailer utilization. The function improves the efficiency of refrigerated transport customers in the food distribution, grocery dairy and truckload carrier markets."

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

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 two-way 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 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, Virginia, and Indiana. Additional information is available at www.TSIPRISM.com.

About Hegemon Electronics
Hegemon Electronics, Inc. is an established engineering and manufacturing company specializing in Power Line Carrier (PLC) products for the transportation industry. Hegemon's technology allows for the seamless integration of reliable tractor-trailer bi-directional digital communications into existing trailer tracking and asset management systems. Based in Sterling Heights, MI, Hegemon has been a member of the PLC4TRUCKS consortium since 1999 and is recognized as the leader in the development of the PLC Identifier System. For more information visit www.hegemonelectronics.com

Contact:
StarTrak Systems, LLC
Jerry Neuner - Director, Sales and Marketing
Phone (719) 579-9796
Hegemon Electronics, Inc.
Ray Suda
Phone (586) 977-6541