Sentry Technology Subsidiary Announces Important EAS Source Tagging Contract

RONKONKOMA, N.Y., -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) announced today that its majority owned subsidiary, Custom Security Industries Inc. (CSI), has received a large contract from a resale partner valued at more than $1,000,000, to supply a new version of Combitag(TM). Combitag(TM) is an Electronic Article Surveillance (EAS) source tagging product designed to protect consumer products in the multimedia industry. This new tag offers substantial cost savings to packagers who wish to source tag while avoiding the cost of maintaining inventories caused by multiple EAS technologies. Combitag(TM) combines the sensors manufactured by the two major EAS technology suppliers into one easy to apply label. The product is now providing enhanced security for some of the largest U.S. mass merchant retailers selling multimedia products.

Introduced in the second half of 2003, sales of Combitag(TM) are projected to exceed 35 million units this year and to double in 2005. CSI is currently expanding production capacity by 50% to meet the increased demand.

CSI is also engaged in new product development programs with links to government and universities. Products from these efforts include a recently released two dimensional security tag for DVD protection in libraries and a patented product authentication technology that will be available in 2005 to serve the multibillion dollar authentication market.