HAUPPAUGE,  N.Y., Aug 8, 2000 /PRNewswire via COMTEX/ --  Sentry Technology
Corporation (OTC Bulletin Board: SKVY.OB) and Dutch A&A Holding, B.V. jointly
announced today the execution of an agreement pursuant to which Dutch A&A
Holding, B.V. will invest $3 million in newly issued Common Stock of Sentry. For
this investment, Dutch A&A Holding, B.V. will receive 37.5% of the outstanding
Common Stock of Sentry on a fully-diluted basis, after giving effect to the
exchange of Sentry's Preferred Stock into Common Stock. In addition, Dutch A&A
Holding, B.V. will have the right to acquire additional shares during the two
year period following the closing, up to an aggregate holding of 60% of the
Common Stock then outstanding. The transaction is conditioned upon Sentry
shareholder approval, including approval by the Preferred and Common
Stockholders, each voting as a class, of a reclassification of the Preferred
Stock into Common Stock on the basis of 5 shares of Common for every Preferred
share, as well as a number of other conditions.
 
Peter Murdoch, the President of ID Systems U.S.A., Inc., an affiliate of Dutch
A&A Holding, B.V., stated, "With this investment, the Dutch A&A family of
companies is pleased to expand its presence in the U.S. market. Sentry, with a
customer base exceeding 5,000 active customers, is extremely well positioned to
expand and develop the penetration of Dutch A&A technology through its North
American direct sales force."
 
Anthony H.N. Schnelling, interim President of Sentry Technology Corporation and
a principal of Bridge Associates LLC, said, "This injection of capital and the
related access to technology developed by Dutch A&A and its various affiliates
will make Sentry more competitive in its current markets for electronic security
and allow Sentry to expand into identification markets while continuing to
develop and extend the potential shown by its current family of products."
 
Dutch A&A, headquartered in the Netherlands, is a group of companies developing,
manufacturing and marketing RFID, Access Control, RF/EM antishoplifting systems,
security labels and software in 50 countries.
 
Sentry Technology Corporation was formed on February 12, 1997 through the merger
of Knogo North America Inc. and Video Sentry Corporation. Through its
subsidiaries, Sentry designs, manufactures, sells, installs and services a
complete line of electronic article surveillance (EAS) and closed circuit
television (CCTV) surveillance systems, including its patented traveling
SentryVision(R) system. The Company's products are used by retailers to deter
shoplifting and employee theft, and by commercial, manufacturing and
governmental customers to protect people and assets.
 
For further information about the companies, please visit the web sites at
sentrytechnology.com and idsystems-dialoc.com.
 
SOURCE Sentry Technology Corporation and Dutch A&A Holding, B.V.
 
 
 CONTACT:          Peter J. Mundy, Vice President & Chief Financial Officer of
                   Sentry Technology Corporation, 631-232-2100; or Peter Murdoch
 President of ID
                   Systems U.S.A. Inc., an affiliate of Dutch A&A Holding, B.V.,
631-232-2100
                   /Company News On-Call:  prnewswire.com
html or fax,
                   800-758-5804, ext. 494538
 
 URL:              sentrytechnology.com