Sentry Technology Signs LOI With Orions Digital

   Sentry Technology Corporation (PINKSHEETS: SKVY) announced today the signing of a Letter Of Intent with Orions Digital Technologies. Under the agreement, Orions will develop a computer vision enhancement to Sentry's OperationalVideo™ software application to perform automated audits of merchandise, pricing and product displays in retail stores. Using video analytics, Orions' advanced technology will automatically compare reference images with real-time images captured using the SentryVision® traveling camera system as well as conventional IP cameras. Orions' technology will also optimize the streaming of high definition images for delivery to various users within a large retail enterprise.

Sentry is nearing the completion of the development of its VideoRailway™, an entirely new traveling camera system. VideoRailway™ is smaller and lighter than Sentry's current system and will allow the camera carriage to travel along curves and around corners. Enhanced features include IP and HD camera options to deliver the high quality images needed for the digital audit process. The ability to negotiate curves and corners, along with full camera pan, tilt and zoom control, provides camera positioning at the precise angle needed to capture important audit information such as product pricing.

Current in-store product auditing is an expensive, labor intensive process performed by individuals physically traveling to store locations to confirm display and pricing matches corporate plans. Sentry's OperationalVideo™ system with digital audits will automatically deliver immediate online confirmation that store displays meet merchandising, advertising and pricing requirements. The system includes an exception-reporting module enabling management to take immediate action at non-compliant stores.

"Orions Digital is very pleased to have forged a technology partnership with Sentry to augment their OperationalVideo™ technology with our computer vision and video analytics. We believe that this collaboration will offer retailers advanced, real-time audits of their in-store merchandise, displays and more," said Melissa Allensworth, CEO of Orions Digital Technologies.

"We are very pleased to be working with Orions Digital," said Peter L. Murdoch, President and CEO of Sentry Technology Corporation. "Orions has the expertise needed to take OperationVideo™ to the next level. The store audit business is a billion dollar industry world wide and we believe that OperationalVideo™ will capture a share of that recurring revenue by delivering retailers a less expensive, timely and more efficient solution."

About Orions Digital Technologies: The company offers a next generation open content ecosystems that optimizes not only the cross-platform delivery of high definition streaming, but also the enjoyment and repurposing of this video. The new platform is a powerful leap forward for consumers wanting highly relevant rich content delivered over IP when and where they choose. It's also a powerful opportunity for content providers seeking new ways to monetize existing and new content. More information can be found at www.orionsdigital.com.

About Sentry Technology Corporation: Sentry 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 SentryVision®, SmartTrack™, a proprietary, patented traveling Surveillance System. 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 [phone]