Sentry Technology Completes Successful

OperationalVideo™ Installations

Ronkonkoma, New York, February 4, 2008 -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today the successful installation of its OperationalVideo™ security and business management solution in a total of 35 store locations for two large national retailers. The total value of systems installed is approximately $2.5 million. OperationalVideo™ delivers real-time images over the internet using Sentry’s SmartTrack™ traveling camera system and digital video server to help control safety and security as well as remote viewing of store operations, merchandising, signage, displays, pricing and employee procedure compliance.

Managers now have access to all store operations from the home office, regional offices and any fixed or mobile location equipped with an internet connection. As well, security personnel are able 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.

“Both of our customers have significantly increased theft apprehension rates and are implementing improved operational controls in locations using OperationalVideo™,” said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. “The success of these first installations has exceeded our expectation. We anticipate that both initial customers will install systems in greater numbers in 2008. This represents an opportunity for millions of dollars of increased revenue over 2007 levels. Now that the company has market proven OperationalVideo™ results, new sales cycles have begun with several of our multi-billion dollar retail customers based in the US and Europe.”

Sentry 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.