Top Grocery Retailer Chooses Sentry Technology

Ronkonkoma, New York, October 4, 2006 -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today the sale of its SentryVision® SmartTrack™ traveling CCTV systems to one of America’s largest and most successful retail grocery chains. The systems will be used to manage both theft and operations in stores. 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, goods and processes. The HipTV™ wireless, handheld device allows the operator full command and control of the traveling camera system while walking a facility.

“Many of the world’s largest retailers use SmartTrack™ for safety and security management in distribution centers and we are pleased to see more retailers applying SmartTrack™ in their store security programs,” said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “Our traveling camera products are finding a growing market opportunity in several key sectors. In particular, the use of SmartTrack™ in store operations leverages excellent relationships with current customers that recognize the product as an effective and reliable loss prevention tool.”

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.

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