Sentry Technology Signs Dealer Contract In France

Ronkonkoma, New York, August 1, 2006 -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today, the signing of a dealer agreement for the sale of its SentryVision® SmartTrack traveling CCTV systems in France with ANAVEO, a market leading video systems integrator. During the initial period of the agreement ending December 31, 2007, ANEVEO has committed to purchase SmartTrack systems valued at a minimum of $700,000.

“We welcome ANAVEO to our growing group of market leading dealer partners selling SmartTrack around the world,” said Joe Ryan, Vice President of Sales and Marketing of Sentry Technology Corporation. “In France, we face a local track competitor and ANAVEO is well positioned to penetrate the market with SmartTrack. ANAVEO is an expert video integrator with a strong presence in leading retailers that are the core market opportunity for our product.”

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.