Sentry Technology Sells SmartTrack to Large Retailers

Ronkonkoma, New York, January 11, 2006 -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today the sale of its SentryVision® SmartTrack traveling CCTV systems for installation in distribution centers of two very large retailers. Both customers are among the 10 largest retailers in America and are repeat users of the Company’s flagship product with budgets allocated for the acquisition of additional SmartTrack systems in 2006. SmartTrack uses patented technology to transmit video images from two pan, tilt and zoom cameras traveling along an aluminum rail mounted on the ceiling. The camera carriage travels at speeds of up to 13 feet per second and provides unobstructed views of people and goods moving throughout the building.

“We are pleased so see major corporations committing to install SmartTrack in multiple sites as an important part of their loss prevention programs,” said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “It is particularly encouraging that in a world full of standard CCTV security options, large customers are consistently choosing the unique features of SentryVision®.”

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 SentryVisionâ, SmartTrack, a proprietary, 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.