SENTRY TECHNOLOGY CORPORATION
                                                  News Release

FOR IMMEDIATE RELEASE                             CONTACT: Peter J. Mundy
                                                           Vice President  CFO
                                                           (631) 739-2000


        SENTRY TECHNOLOGY CORPORATION ANNOUNCES NEW CREDIT FACILITY

     RONKONKOMA, New York, December 18, 2006, -- Sentry Technology Corporation
(OTC Bulletin Board: SKVY) today announced it has entered into a new $550,000
secured revolving credit facility with Tradition Capital Bank. This facility
will be in addition to Sentrys lending facility with Royal Bank of Canada. The
loan will be secured by Sentrys assets, in a second position to Royal Bank of
Canada, and guaranteed by Mr. Murdoch, Sentrys President and CEO and Mr. Furst,
a Sentry director. Interest is payable at a rate of prime plus 1.00%. The
Company may draw funds under the facility through June 15, 2007.

     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. The CCTV product line features
SentryVision?, SmartTrack, a proprietary, patented traveling Surveillance
System. The Companys 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.

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     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.