SENTRY TECHNOLOGY WINS LAWSUIT

Ronkonkoma, New York, December 10, 2007 -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today a jury verdict in favor of Sentry regarding litigation brought in the Supreme Court of New York, County of Suffolk by Bi-County Park Associates, Inc. d/b/a/Ashlind Properties (“Bi-County”) for recovery of a real estate brokerage commission in the amount of $288,000 relating to the termination of the lease at its former Hauppauge location.

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.