Sentry Technology Receives $500,000 Order From Major Retailer

Ronkonkoma, New York, September 18, 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 one America’s top three retailers. The SmartTrack system 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.

“This group of orders for 5 facilities valued at approximately $500,000 marks the installation of SmartTrack in more than 25 of our customer’s distribution centers where SmartTrack is the primary security tool,” said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “The confidence shown in SmartTrack by major retailers worldwide is leading to new customer sales both domestically and through our growing international dealer network.”

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 SentryVisionâ, SmartTrack, 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.