Sentry Technology Wins Texas State Contract

Ronkonkoma, New York, May 25, 2006 -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today that it has been awarded a contract for a three-year term to supply library security products to The Local Government Purchasing Cooperative (Cooperative) for the state of Texas. The Cooperative is a statewide purchasing cooperative for school districts, junior colleges, cities, counties, other political subdivisions and eligible nonprofit entities. The Cooperative was formed by the Texas Association of School Boards, Inc. (TASB), a non‑profit corporation of the State of Texas, and includes the Texas Municipal League (TML), a Texas unincorporated not‑for‑profit association and the Texas Association of Counties (TAC), a Texas not‑for‑profit association.

The Cooperative’s contract for Sentry Technology products and services will be available to the members of TASB, TML, and TAC, other local government and nonprofit entities. TASB will be responsible for supplying the electronic commerce technology to facility online purchasing by Cooperative members. There are currently 1600 members of the Cooperative.

“We are a security supplier to both the Dallas Public Library and the Harris County Public Library in Houston,” said Peter L. Murdoch, President and CEO for Sentry Technology Corporation. “Our agreement with The Local Government Purchasing Cooperative will help up us add to our growing base of public, academic and school library customers in the state of Texas. We believe that this contract announcement will also raise our profile as a leading supplier to libraries across America while adding millions of dollars in revenue over the life of the agreement.”

Sentry Technology Corporation designs, manufactures, sells and installs a complete line of Closed Circuit Television (CCTV) solutions, Electro-Magnetic (EM) and RFID based Library Management systems as well as Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems. The CCTV product line features the SentryVisionâ SmartTrack system, a proprietary, patented traveling Surveillance System. The Company’s products are used by libraries to secure inventory and improve operating efficiency, by retailers to deter shoplifting and internal theft and by industrial and institutional customers to protect assets and people. 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.