Under the terms of the agreement, NEC will incorporate 2.4 GHz Wi-Fi compatible TSI PRISM RFID technology into its suite of security systems and integration services which will be marketed to the 100 prison facilities throughout the two countries, with a combined inmate population exceeding 33,000. NEC will also provide installation services for all RFID system sales.

NEC's initial TSI PRISM system sale to an Australian prison with approximately 350 male and female inmates housed in separate facilities within the complex is scheduled to commence installation in February 2008. Total project value is in excess of $1.0 million. Additional details of the project will be made available by NEC within the next 30 days.

Greg Oester, Alanco/TSI PRISM, Inc., President, commented, "NEC's decision to include our technology in its suite of security product offerings and the effort it has expended in opening the sales potential in Australia and New Zealand serve to validate the international scope of the TSI PRISM corrections market opportunity. We are gratified in having secured a first sale in Australia and in having the opportunity to co-develop a significant presence in the region with a partner of NEC's stature."

NEC Australia's Tim Payne, Business Development Manager, commented, "We believe that prison facilities in Australia/New Zealand will gain significant benefits from deploying Alanco's TSI PRISM inmate tracking technology, and we are focused on the pursuit of this multi-million-dollar market opportunity."

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