Major Retailer Expands Use Of

OperationalVideo™

Ronkonkoma, New York, October 10, 2007 -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today the signing of a purchase contract with one of America’s largest retailers to install a second site with SentryVision^® SmartTrack™ traveling CCTV systems including OperationalVideo™. The order is valued in excess of $100,000 and is in addition to early customer acceptance of the initial trial installation that was completed in September.

The customer has thousands of stores and expects to use OperationalVideo™ as a tool to provide improved information for business managers. OperationalVideo™ delivers real-time images over the internet to help control safety and security as well as remote viewing of store operations, merchandising, signage, displays, pricing and employee procedure compliance. Managers will have access to all store operations from the home office, regional offices and any other fixed or mobile location equipped with an internet connection. As well, the system architecture allows security personnel to walk the floor interacting with staff and customers while maintaining control of the SmartTrack™ system using a wireless PDA. Video is managed via the SentryVision^® Server, a network device that provides real-time remote viewing and user passwords to manage hierarchal control of the system.

“OperationalVideo™ is gaining traction as a leading solution in what is forecasted to be a very large segment of the video industry,” said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “We are excited that one of the country’s largest retailers is moving forward with a second OperationalVideo™ installation ahead of schedule. In less than three months, two national retail chains have adopted our OperationalVideo™ concept. Both customers expect to install additional systems in 2008 for a combined total of more than 200 locations.”

Sentry designs, manufactures, sells and installs a complete line of Closed Circuit Television (CCTV) solutions, Electro-Magnetic (EM) and RFID based Library Management systems including QuickCheck™ patron self-service kiosks. 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. The CCTV product line features SentryVisionâ, SmartTrack™, a proprietary, patented traveling camera system. OperationalVideo™, a Sentry innovation, uses SmartTrack™ to deliver real-time images over the internet to help retailers control safety and security as well as remote viewing of store operations, merchandising, signage, displays, pricing and employee procedure compliance. 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.