News Release

FOR IMMEDIATE RELEASE CONTACT: Peter Murdoch

President & CEO

(631) 739-2000

ID Systems & Knogo North America Change Names to Sentry Technology

RONKONKOMA, January 24, 2005 -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today the change in the name of three of its wholly owned subsidiaries, ID Systems USA Inc., ID Security Systems Canada Inc. and Knogo North America Inc., to Sentry Technology USA Inc., Sentry Technology Canada Inc. and Sentry Technology Corporation, respectively. As part of an ongoing effort to consolidate operations and to better focus market presence, all ID Systems, Knogo and Sentry product lines will be sold under the Sentry Technology name and corporate logo.

“Following the acquisition of the ID Systems group by Sentry Technology Corporation in 2004, sales representatives have been trained on the product lines of all companies,” said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “We have chosen Sentry Technology as the single trade name to grow the combined businesses and believe we can build better market recognition by concentrating on a single brand strategy.”

In other business, Lowe’s Home Centers, Sentry’s largest customer, has selected one of the Company’s competitors as the single vendor to service CCTV equipment installed in its stores. Sentry expects to continue as a Lowe’s supplier, selling its SentryVision® SmartTrack traveling camera system. The Lowe’s maintenance agreement was approximately $850,000 of Sentry’s total revenue in 2004.

Sentry Technology Corporation designs, manufactures, sells and installs a complete line of Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems and Closed Circuit Television (CCTV) solutions. The CCTV product line features the proprietary SentryVisionâ SmartTrack patented traveling Surveillance System. The Company’s products are used by retailers to deter shoplifting and internal theft and by industrial and institutional customers to protect assets and people. The Company’s acquisition of ID Systems expands the Company’s product offering to include proximity Access Control and Radio Frequency Identification (RFID) solutions. For further information, please visit our website at www.sentrytechnology.com.

This press release may include information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the Company's Securities and Exchange Commission filings.