Sentry Technology Announces Milestone in New System Development

Sentry Technology Corporation (Pink Sheets:SKVY) announced today, the successful development of a track prototype as part of an entirely new version of its SmartTrack™ traveling camera system. The track is smaller and lighter than the current design and will allow the camera carriage to travel along curves and around corners. SmartTrack™ has been sold primarily in big box retail and distribution centers where it is serving six of the world's ten largest retailers. The size and cost structure of the new track system is targeted toward a much larger market in food, drug and general merchandise stores. The electronics are in the design phase and will include features to augment the value of Sentry's OperationalVideo™ software as a service platform, for in-store product audits, as well as safety and security management. The system is expected to be released in the later part of the first quarter of 2011.

"We are excited by the new track prototype," said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. "Traveling around corners and features such as digital video will open a very large market for our new product. Over recent years we have proven the quality and reliability of our SmartTrack™ design with retailers around the world. The sale of the new system will benefit from relationships directly with leading retailers as well as our many distribution partners worldwide. In particular, some of our largest customers have expressed interest in growing the use of traveling video at a lower price point. We expect the new design will add significant new revenue opportunities in 2011 and beyond."

Sentry Technology Corporation 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. Our CCTV product line features SentryVisionâ, SmartTrack™, a proprietary, patented traveling Surveillance System. 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. 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:  Sentry Technology Corporation
          Peter L. Murdoch, President & CEO
          [phone]