News Release

FOR IMMEDIATE RELEASE CONTACT: Peter J. Mundy

Vice President – CFO

(631) 739-2000

SENTRY TECHNOLOGY CORPORATION ANNOUNCES NEW CREDIT FACILITY

RONKONKOMA, New York, May 17, 2005, -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) today announced it has entered into a new Cdn $4.5 million (UD$3.6 million) global secured credit facility with Royal Bank of Canada. Interest is payable at a rate of Royal Bank prime plus 1.25%. This facility will replace Sentry’s current revolving credit agreement in the United States and its overdraft lending and term loan agreement in Canada. The proceeds under this facility may be used for general working capital purposes. Borrowings will be based on accounts receivable and inventory.

“We are pleased with the confidence shown in our Company by Royal Bank, Canada’s largest bank” said Peter J. Mundy, Vice President and CFO of Sentry Technology Corporation. “The consolidation of our credit facilities is another step in our efforts to improve operating efficiencies and to further reduce our costs of financing.”

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.