Attached files

Exhibit 99.3


FOR IMMEDIATE RELEASE

CONTACTS:         Corporate Contact:
                  John Carlson, Exec VP & CFO
                  480-505-4869


                            Alanco Technologies, Inc.
                         to Raise Approximately $500,000
                          in Registered Direct Offering



(Scottsdale,  AZ - July 9, 2010) - Alanco  Technologies,  Inc., (NASDAQ:  ALAN),
announced  today that it has received  commitments  from  certain  institutional
investors  to  purchase  an  aggregate  of  approximately  $500,000  of Alanco's
securities in a registered direct offering.

Alanco expects to receive net proceeds of approximately $460,000 after deducting
placement  agent fees and other  offering  expenses.  Alanco has entered  into a
securities  purchase agreement with these investors pursuant to which Alanco has
agreed to sell an  aggregate  of up to  2,173,913  shares  of  Common  Stock and
Warrants  exercisable for up to 760,871  additional  shares of its Common Stock.
Each  unit,  consisting  of one share of Common  Stock and 0.35 of a Warrant  to
purchase a share of Common Stock, will be sold for a purchase price of $0.23 per
unit.

The Warrants to purchase  additional  shares will be  exercisable at an exercise
price of $0.33 per share beginning  immediately and will expire three years from
the date that the Warrants are issued. Alanco expects to use the net proceeds of
the  offering  for  working  capital  and  other  general  corporate   purposes,
including,  without  limitation,  for the funding of potential  acquisitions  of
other  businesses.  Source Capital Group acted as the exclusive  placement agent
for the transaction.

The offering is made pursuant to the Company's shelf  registration  statement on
Form S-3 (File No.  333-163288),  which was declared effective by the Securities
and Exchange  Commission  on December 30,  2009.  The Company,  pursuant to Rule
424(b) under the  Securities  Act of 1933,  shall file with the  Securities  and
Exchange Commission a prospectus supplement relating to the offering.  Copies of
the final  prospectus and  accompanying  prospectus  supplement  relating to the
offering may be obtained from the SEC's website at http://www.sec.gov.

Alanco  Technologies,  Inc.  provides  wireless  monitoring and asset management
solutions  through its  StarTrak  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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