Sentry Technology Corporation (OTC Pink: SKVY) today announced the receipt of a $230,000 purchase order from one of America's largest fashion retailers to install eight VideoRailway™ (VR) systems. VideoRailway is the Company's newest traveling camera technology featuring an HD/IP, pan tilt and zoom camera that travels along a rail suspended from the ceiling. A combination of straight and curved rail segments can create a "U" as well as a completely closed loop. By turning corners, a single camera views a much larger area with minimal additional expense.

The VideoRailway systems will enhance security in the retailer's expanding fulfillment center that services orders placed on-line. Fulfillment centers have hundreds of merchandise aisles where workers pick individual items for delivery by courier directly to customers. The VR camera provides the operator with the exact viewing angles needed and patrols every aisle at a significantly lower cost compared to installing hundreds of fixed cameras throughout the facility. The VR systems will interface with the customer's IP video management software for seamless operation with other security devices.

"We are pleased to receive our first order for multiple VideoRailway systems to be installed at a major retailer," said Peter Murdoch, President and CEO of Sentry Technology. "This business is in advance of the official launch of the VR system scheduled for early September. Thousands of our SmartTrack, analog traveling CCTV systems have been installed worldwide and we believe that the new VideoRailway design addresses a much larger market, offering a great opportunity to grow our business."

Sentry Technology Corporation designs, manufactures, sells and installs Closed Circuit Television (CCTV) solutions, Electro-Magnetic (EM) and RFID based Library security and self-service systems. Our CCTV product line features VideoRailway™ and SmartTrack™, a proprietary, traveling camera technology. Our OperationalVideo™, OVportal™ software application assists retailers with on-line management of safety and security, merchandising audits and employee procedure compliance. Products are used by libraries to secure inventory and improve operating efficiency, by retailers to deter theft and enhance productivity, and by industrial/institutional customers to protect assets and people. More information can be found 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.

CONTACT: Peter L. Murdoch President & CEO (631) 739-2000

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