News Release

FOR IMMEDIATE RELEASE

StarTrak Awarded Pilot Contract To Demonstrate New Remote Water Quality Monitoring System

Solar Powered System Provides Continuous Wireless Monitoring and Eliminates Cost of Manual Sample Collection and Transport

(Morris Plains, NJ - December 10, 2007) - StarTrak Systems, a subsidiary of Alanco Technologies, Inc. (NASDAQ: ALAN), announced that it has been awarded a pilot contract to demonstrate its new REMTrak^™ Remote Environmental Monitoring system at a high security government facility to monitor water contaminants including volatile organic chemicals (VOCs), trace inorganics and radioactive materials. REMTrak utilizes StarTrak's standard ReeferTrak^™ communications modem and existing wireless telematics network with the addition of specialized sensors and analysis tools for this new market application. A solar power feature allows REMTrak units to be located virtually anywhere on earth. The new remote monitoring system is capable of continuously sampling a wide variety of environmental variables and wirelessly transmitting data to a central monitoring authority at reduced costs compared to current sampling and transport practices at these remote locations.

The potential market opportunity for remote environmental monitoring systems is multiple thousands of rural site installations at state and federal government facilities, military bases and in the oil and gas, mining and agricultural industries.

StarTrak President, Tim Slifkin, commented, "The new REMTrak application demonstrates the flexibility of StarTrak's existing technology and network infrastructure to respond to new market opportunities. Although our primary focus remains in the cold chain and transportation segments, we continue to seek opportunities to expand our technology to additional vertical 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 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.

For Additional Information Contact:
StarTrak Systems, LLC
Jerry Neuner
Director, Sales and Marketing
Tel: (719) 579-9796