Sentry Technology Corporation (OTC Pink: SKVY) today announced the installation of a VideoRailway™ (VR) system in Canada's largest retailer, operating in the distinct categories of automotive parts, automotive service, tools and hardware, sporting goods, housewares, and seasonal products. VideoRailway is Sentry'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 "J" or "U" as well as a completely closed loop.

The VideoRailway system is configured as a 400 foot continuous rail with two 90 degree turns creating three straight segments as illustrated.

The ability to turn corners allows the operator to observe operations and potential shoplifters throughout the store. Other traveling camera designs require the purchase of three independent straight tracks, three cameras and three sets of electronics to monitor the same area. By turning corners, a single VR camera views a much larger area with minimal additional expense.

"We are pleased to complete the first in-store installation of VideoRailway," 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 and is a clear indication of the significant benefit provided by turning corners. In this case, a single VideoRailway does the work of three conventional traveling camera systems, otherwise we would have been priced out of the transaction. We believe this initial installation illustrates that by offering HD quality video at a lower cost of ownership per location, VideoRailway opens a much larger market for our traveling camera technology."

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.

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

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