FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

(Mark  One)
[  X  ]     QUARTERLY  REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE     ACT  OF  1934

                    For the quarter ended September 30, 2004

                                       OR

[    ]     TRANSITION  REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE     ACT  OF  1934

             For the transition period from __________ to __________


                 Commission File Number                  1-12727
                                                       ----------


                           SENTRY TECHNOLOGY CORPORATION
                           -----------------------------
        (Exact name of small business issuer as specified in its charter)


       Delaware                                        96-11-3349733
     ----------                                        -------------
(State  or  other  jurisdiction  of               (I.R.S. Employer
incorporation  or organization)                      Identification No.)


      1881  Lakeland  Avenue,  Ronkonkoma,  NY                       11779
   ----------------------------------------------                    -----
     (Address of principal executive offices)                      (Zip Code)

                                 631-739-2000
                                 ------------
              (Registrant's telephone number, including area code)


    (Former name, former address and former fiscal year, if changed since last
                                     report)


Indicate by check mark whether the registrant (1) has filed all reports required
to  be  filed  by  Section  13  or 15 (d) of the Securities Exchange Act of 1934
during  the  preceding 12 months (or for such shorter period that the registrant
was  required  to  file  such  reports), and (2) has been subject to such filing
requirements  for  the  past  90  days.

Yes     X          No
        -


As  of  November  15,  2004,  there  were  120,548,804  shares  of  Common Stock
outstanding.




<PAGE>



                          SENTRY TECHNOLOGY CORPORATION
                          -----------------------------
                                      INDEX
                                      -----




                                                                     Page  No.
                                                                     ---------

PART  I.   FINANCIAL  INFORMATION
---------------------------------

Item  1.     Financial  Statements  (Unaudited)

     Consolidated  Balance  Sheets  --
     September  30,  2004  and  December  31,  2003                      3

     Condensed  Consolidated  Statements  of  Operations  --
     Three  Months  Ended  September  30,  2004  and  2003
     and  Nine  Months  Ended  September  30,  2004  and  2003           4

     Consolidated  Statements  of  Cash  Flows  --
     Nine  Months  Ended  September  30,  2004  and  2003                5

     Notes  to  Condensed  Consolidated  Financial
     Statements  -  September  30,  2004                             6  -  11


Item  2.     Management's  Discussion  and  Analysis  of
     Financial  Condition  and  Results  of  Operations             12  -  17


Item  3.     Controls  and  Procedures                                  17



PART  II.   OTHER  INFORMATION
------------------------------

Item  6.     Exhibits  and  Reports  on  Form  8-K                      18


Signatures                                                              18






<PAGE>



PART  I.   FINANCIAL  INFORMATION
---------------------------------

Item  1.     Financial  Statements  (Unaudited)

SENTRY  TECHNOLOGY  CORPORATION
CONSOLIDATED  BALANCE  SHEETS
(In  thousands)
<TABLE>
<CAPTION>
<S>                                                             <C>              <C>
                                                                September 30,    December 31,
                                                                          2004            2003
                                                                ---------------  --------------

ASSETS
--------------------------------------------------------------
CURRENT ASSETS
  Cash and cash equivalents. . . . . . . . . . . . . . . . . .  $        1,446   $         210
  Accounts receivable, less allowance for doubtful
     accounts of $413 and $304, respectively . . . . . . . . .           3,469           1,482
  Inventories. . . . . . . . . . . . . . . . . . . . . . . . .           3,384           1,855
  Prepaid expenses and other current assets. . . . . . . . . .             410             126
                                                                ---------------  --------------
    Total current assets . . . . . . . . . . . . . . . . . . .           8,709           3,673

PROPERTY, PLANT AND EQUIPMENT, net . . . . . . . . . . . . . .             658             209
GOODWILL                                                                 1,697             ---
OTHER ASSETS . . . . . . . . . . . . . . . . . . . . . . . . .             558             211
                                                                ---------------  --------------

                                                                $       11,622   $       4,093
                                                                ===============  ==============

LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------------------------------
CURRENT LIABILITIES
  Revolving line of credit and term loan . . . . . . . . . . .  $        2,904   $       1,515
  Accounts payable . . . . . . . . . . . . . . . . . . . . . .             806             566
  Accrued liabilities. . . . . . . . . . . . . . . . . . . . .           1,258           1,601
  Obligations under capital leases - current portion . . . . .               5               5
  Deferred income. . . . . . . . . . . . . . . . . . . . . . .             150             271
                                                                ---------------  --------------
    Total current liabilities. . . . . . . . . . . . . . . . .           5,123           3,958

NOTES PAYABLE. . . . . . . . . . . . . . . . . . . . . . . . .             218             247
OBLIGATIONS UNDER CAPITAL LEASES -
  non-current portion. . . . . . . . . . . . . . . . . . . . .               9              13
CONVERTIBLE DEBENTURES                                                   1,852             ---
MINORITY INTEREST                                                          951             ---
                                                                ---------------  --------------
    Total liabilities. . . . . . . . . . . . . . . . . . . . .           8,153           4,218

SHAREHOLDERS' EQUITY
  Common stock . . . . . . . . . . . . . . . . . . . . . . . .             116              86
  Additional paid-in capital . . . . . . . . . . . . . . . . .          48,144          44,658
  Accumulated deficit. . . . . . . . . . . . . . . . . . . . .         (44,890)        (44,749)
  Note receivable from shareholder                                         ---            (120)
  Equity adjustment from foreign currency translation                       99             ---
                                                                ---------------  --------------
    Total shareholders' equity (deficit) . . . . . . . . . . .           3,469            (125)
                                                                ---------------  --------------
                                                                $       11,622   $       4,093
                                                                ===============  ==============

See notes to the condensed consolidated financial statements.


</TABLE>












<PAGE>













SENTRY  TECHNOLOGY  CORPORATION
CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(In  thousands,  except  per  share  data)

<TABLE>
<CAPTION>

<S>                                                             <C>          <C>             <C>        <C>


                                                                 Three Months Ended           Nine Months Ended
                                                                    September 30                September 30

                                                                   2004        2003           2004        2003
                                                                   ----        ----           ----        ----

REVENUES . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 4,577      $ 3,784         $ 11,764   $ 9,684

COSTS AND EXPENSES:
  Cost of sales. . . . . . . . . . . . . . . . . . . . . . . .    1,915        1,490            4,538     3,979
  Customer service expenses. . . . . . . . . . . . . . . . . .    1,100        1,094            3,220     2,912
  Selling, general and administrative expenses . . . . . . . .    1,064          976            3,115     2,726
  Research and development . . . . . . . . . . . . . . . . . .      266          157              606       492
                                                                --------     --------        --------   -------

                                                                  4,345        3,717           11,479    10,109
                                                                --------     --------        --------   -------

OPERATING INCOME (LOSS). . . . . . . . . . . . . . . . . . . .      232           67              285      (425)

INTEREST AND FINANCING EXPENSES. . . . . . . . . . . . . . . .      105          171              309       513
                                                                --------     --------        --------   -------

INCOME (LOSS) BEFORE INCOME TAXES. . . . . . . . . . . . . . .      127         (104)             (24)     (938)

INCOME TAX EXPENSE (BENEFIT) . . . . . . . . . . . . . . . . .       62         (143)              77      (491)
                                                                --------     --------        --------   -------

INCOME (LOSS) BEFORE MINORITY INTEREST
     AND EXTRAORDINARY ITEM. . . . . . . . . . . . . . . . . .       65           39             (101)     (447)

MINORITY INTEREST                                                   (25)         ---              (40)      ---
                                                                --------     --------        --------   -------

INCOME (LOSS) BEFORE EXTRAORDINARY ITEM. . . . . . . . . . . .       40           39             (141)     (447)

EXTRAORDINARY ITEM - Gain on extinguishment
  of debt, net of $143 and $491  income taxes                       ---          215              ---       737
                                                                --------     --------        --------   -------

NET INCOME (LOSS). . . . . . . . . . . . . . . . . . . . . . .  $    40          254         $   (141)  $   290
                                                                ========     ========        ========   =======

NET INCOME (LOSS) PER SHARE
Income (loss) before extraordinary item. . . . . . . . . . . .  $  0.00         0.00         $  (0.00)  $ (0.01)
Extraordinary item . . . . . . . . . . . . . . . . . . . . . .     0.00         0.00             0.00      0.01
                                                                --------     --------        --------   -------
  Basic and diluted. . . . . . . . . . . . . . . . . . . . . .  $  0.00         0.00         $  (0.00)  $  0.00
                                                                ========     ========        ========   =======

WEIGHTED AVERAGE SHARES
  Basic and diluted. . . . . . . . . . . . . . . . . . . . . .  115,753       85,656          102,457    83,619
                                                                ========     ========        ========   =======


See notes to the condensed consolidated financial statements.
</TABLE>




<PAGE>










SENTRY  TECHNOLOGY  CORPORATION
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
(In  thousands)


<TABLE>
<CAPTION>



                                                                           Nine Months Ended
                                                                             September 30,
                                                                          -------------------
<S>                                                                       <C>          <C>
                                                                                2004      2003
                                                                          ----------  --------


CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss). . . . . . . . . . . . . . . . . . . . . . .          $     (141)  $   290
  Adjustments to reconcile net income (loss)
     to net cash (used in) provided by operating activities:
     Depreciation and amortization . . . . . . . . . . . . . . .                 167       244
     Provision for bad debts . . . . . . . . . . . . . . . . . .                  20        38
     Non-cash consideration                                                       85       ---
     Minority interest in net income of consolidated subsidiary                   40       ---
     Extraordinary gain on extinguishment of debt                                ---    (1,228)
  Changes in operating assets and liabilities:
     Accounts receivable . . . . . . . . . . . . . . . . . . . .                (648)     (510)
     Inventories . . . . . . . . . . . . . . . . . . . . . . . .                (247)      948
     Accounts payable and other current assets and liabilities .                 (51)      422
                                                                          ----------  --------

    Net cash (used in) provided by operating activities. . . . .                (775)      204
                                                                          -----------  --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant and equipment, net . . . . . . . .                 (70)      (23)
  Intangibles. . . . . . . . . . . . . . . . . . . . . . . . . .                (328)      (12)
  Net cash provided by the acquisition of ID Systems                              31       ---
                                                                          -----------  --------

    Net cash used in investing activities. . . . . . . . . . . .                (367)      (35)
                                                                          -----------  --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net borrowings (payments) under the revolving line
     of credit and term loan . . . . . . . . . . . . . . . . . .                 382      (172)
  Proceeds from bridge loan                                                      100       ---
  Repayment of bridge loan                                                      (100)      ---
  Proceeds from convertible debentures and warrants                            2,000       ---
  Repayment of obligations under capital leases. . . . . . . . .                  (4)      (53)
  Proceeds from sale of stock, net                                               ---         5
                                                                          -----------  --------

    Net cash provided by (used in) financing activities. . . . .               2,378      (220)
                                                                          -----------  --------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . .               1,236       (51)

CASH AND CASH EQUIVALENTS, at beginning of period. . . . . . . .                 210       266
                                                                          -----------  --------
CASH AND CASH EQUIVALENTS, at end of period. . . . . . . . . . .          $    1,446   $   215
                                                                          ===========  ========


See notes to the condensed consolidated financial statements.



</TABLE>













<PAGE>
SENTRY  TECHNOLOGY  CORPORATION
NOTES  TO  CONDENSED  CONSOLIDATED  FINANCIAL  STATEMENTS
SEPTEMBER  30,  2004


NOTE  A  --  Basis  of  Presentation
------------------------------------
The  consolidated  financial  statements  include the accounts of Sentry and its
majority-owned  subsidiaries.  All  intercompany  accounts and transactions have
been  eliminated  in  consolidation.

The accompanying unaudited condensed consolidated financial statements have been
prepared  in  accordance  with  accounting  principles generally accepted in the
United  States  of  America  for  interim  financial  information  and  with the
instructions  to  Form  10-QSB.  Accordingly,  they  do  not  include all of the
information  and  footnotes required by accounting principles generally accepted
in  the  United  States  of  America  for  complete financial statements. In the
opinion of management, all adjustments (consisting of normal recurring accruals)
considered  necessary  for  a  fair  presentation  have  been included.  Interim
results are not necessarily indicative of the results that may be expected for a
full  year.  These  financial  statements should be read in conjunction with the
audited consolidated financial statements and notes thereto included in Sentry's
Annual  Report to Stockholders on Form 10-KSB for the fiscal year ended December
31,  2003,  as  filed  with  the  Securities  and  Exchange  Commission.

Certain prior period amounts have been reclassified to conform to current period
presentation.


NOTE  B  --  Capital  Transactions  and  ID  Systems  Acquisition
-----------------------------------------------------------------
Over  the  last  several years, our largest shareholder, Dialoc ID Holdings B.V.
("Dialoc")  was  not  able  to provide us with additional financial support.  On
April  19,  2004,  Dialoc  sold  39,066,927  Sentry  common shares (representing
approximately  46%  of  the  total issued and outstanding shares of Sentry) to a
group of investors.  Of the group, Saburah Investments Inc. ("Saburah") acquired
22,758,155  shares,  Mr.  Robert  Furst 14,554,386 shares and Dr. Morton Roseman
1,754,386  shares.  Mr. Peter Murdoch, President, CEO and Director of Sentry, is
the  owner  of  Saburah.  Mr.  Furst  is a long-standing member of Sentry's
Board of Directors.  As a result of this transaction, Messers Angel and de Nood,
Principals  of  Dialoc,  resigned  from  Sentry's  Board  of  Directors.

In  addition  to  the  purchase of Sentry's common shares, Saburah also acquired
100% of ID Security Systems Canada, Inc. and ID Systems USA Inc. ("ID Systems").
The price paid to Dialoc by Saburah and Murdoch for Sentry and ID Systems shares
in  cash, debt assumption and other consideration was approximately $3.6 million
plus the surrender of Murdoch's 15% interest in Dialoc.  Saburah  also agreed
to  make  a  payment  to  Dialoc  in the future equal to approximately 6% of any
payment  it  receives from Checkpoint Systems Inc. ("Checkpoint") resulting from
litigation  brought  by  ID  Canada  against  Checkpoint.

On  April  30, 2004, Sentry purchased from Saburah Investments, Inc., an Ontario
corporation,  all  of  the  outstanding  common shares and Series "A" preference
shares  of  ID  Security Systems Canada Inc., an Ontario corporation, and all of
the  outstanding  capital  stock  of  ID  Systems  USA,  Inc.,  a  Pennsylvania
corporation  (collectively,  "ID  Systems").  ID  Systems  is  a  Toronto  based
company  engaged  in  anti-shoplifting  technology,  security  labeling,  radio
frequency  identification  (RFID),  access control and library security.  Sentry
acquired  ID  Systems  from  Saburah  in  exchange  for 30,000,000 Sentry common
shares.  The  price  paid  per Sentry share for the securities of ID Systems was
valued  at  approximately  $0.11.  A  special  committee  of  Sentry's  Board of
Directors  received an opinion from Corporate Valuation Services confirming that
the price paid for the acquisition of ID Systems was fair from the point of view
of  Sentry shareholders.  As part of the purchase agreement, the proceeds of the
ID  Systems  litigation settlement will be distributed to the former ID Systems'
shareholders.  However  Saburah  and  Sentry have agreed that Sentry may require
Saburah  to  purchase  additional  Sentry  common  shares  under  certain
circumstances.  Sentry's  Board  of Directors and shareholders owning a majority
of  Sentry  common  stock  approved  the  acquisition  of  ID  Systems.

Other  benefits  flowing to Sentry/ID Systems via the purchase of ID Systems are
as  follows:

-     ID  Systems  and Sentry continue as the exclusive distributor in North and
South  America  for  a  period  of  five years for all Dialoc products including
Laserfuse  radio  frequency  security  labels  and  all  RFID  products.

-     Dialoc  becomes  the  exclusive  distributor  in Europe and Asia of labels
manufactured  by  ID  Systems'  security  label manufacturing subsidiary, Custom
Security  Industries  Inc.  ("CSI").

-     CSI  acquires  the right to purchase Laserfuse raw material for processing
into  finished  security labels in its Toronto plant in order to reduce the cost
of  production.

-     CSI acquires the option to purchase a non-exclusive license to manufacture
complete  Laserfuse  security  labels  for  a  period of 10 years subject to the
payment  of  $500,000  and  a  running  royalty  of  $0.001  per  label.

-     Dialoc  will  continue  to  be  a dealer for Sentry products in Europe and
Asia.

The  purchase  price  of  the  ID  Systems  acquisition  was  as  follows:
                                       (in  thousands)
     Value  of  Sentry  Technology
       Corporation  common  stock       $     3,300
     Transaction  costs                          88
                                        -----------
     Total  purchase  price             $     3,388
                                        -----------

Under  the  purchase  method of accounting, the total purchase price as detailed
above  was  allocated  to  ID System's net tangible assets and intangible assets
based  on  their  preliminary  fair  values  as  of April 30, 2004, which are as
follows:

                                                     (in  thousands)
     Cash                                              $     119
     Accounts  receivable                                  1,309
     Inventories                                           1,232
     Prepaid  expenses  and  other  current  assets          794
     Property  and  equipment                                458
     Deferred  charges                                        69
     Bank  debt                                             (998)
     Accounts  payable  and  accrued  liabilities           (449)
     Other  liabilities                                     (843)
                                                       ----------
     Net  tangible  assets                                 1,691
     Goodwill                                              1,697
                                                       ----------
     Total  purchase  price                            $   3,388
                                                       ==========

The  Company  is  still  in  the  process  of  obtaining  final  support for the
valuations  of certain intangible assets; accordingly allocation of the purchase
price  is  subject  to  modification in the future. Any such modification is not
expected  to  be  significant.  On  an  ongoing  basis, Sentry will evaluate the
carrying  value  versus the discounted cash benefit expected to be realized from
the  performance  of  the underlying operations and adjust for any impairment in
value.

Our  condensed  consolidated  statements  of operations include the revenues and
expenses  of  ID  Systems  from  May  1,  2004.

The  following supplemental pro forma information is presented to illustrate the
effects  of  the  acquisition  on the historical operating results for the three
month  and  nine  month  periods  ended  September  30,  2004 and 2003 as if the
acquisition  had  occurred  at  the  beginning  of  each  respective  period:


                              Three  Months  Ended       Nine  Months  Ended
                                  September  30,             September  30,
                              2004         2003           2004        2003
                              ----         ----           ----        ----
                                  (in  thousands,  except  per  share  data)

Revenues                    $ 4,577      $ 5,534        $13,347       $14,163
Income (loss) before
   extraordinary  item      $    40      $   235**      $  (358)*     $  (204)**
Net income (loss)           $    40      $   450**      $  (358)      $   533**
Net income (loss) per share $  0.00      $  0.00        $ (0.00)      $  0.00


*  The  income  before extraordinary item in the nine months ended September 30,
2004  includes  a  preacquisition  write down of $256,000 related to ID Systems'
Brazilian  subsidiary.
**  The  income  (loss)  before  extraordinary item in the three and nine months
ended  September  30,  2003  includes  an  income  tax benefit of $143 and $491,
respectively,  resulting  from  the  utilization  of  net  operating  loss
carryforwards.  Net  income  in  the  2003  periods includes both the income tax
benefit  and  the  extraordinary  gains of $215 and $737, respectively, from the
extinguishment  of  debt.

NOTE  C  --  Convertible  Debenture
-----------------------------------
On  April  30,  2004,  Sentry  entered  into  a  $2,000,000  secured convertible
debenture  with  Brascan  Technology Fund ("Brascan"), an alternative investment
fund  established  by  Brascan  Asset  Management,  to  invest  in  early stage,
technology-based  companies  with  high  growth  potential.




Key  terms  of  the  transaction  are  as  follows:
-     Four-year  term.
-     Interest  rate  of  8%.
-     Redeemable  at  Sentry's  option  after  18  months.
-     Conversion  price equal to the market price, at time of conversion, less a
      discount  of  30%  with  a  maximum  conversion  price  of  $0.12  per
      share.
-     Conversion is at the option of Brascan when market share price is equal
      to or greater  than  $0.17  per  share  or with the approval of Sentry's
      Board of Directors  when  the  market  share  price  is  less  than $0.17
      per share.
-     Sentry will provide most favored  pricing to all Brascan affiliates and
      expects  to be a supplier of security and identification products to the
      Brascan affiliates.
-     Brascan  was  issued warrants for 5,000,000 shares of Sentry common stock,
      priced  at  $0.15  per  share,  exercisable  anytime within the next four
      years.
-     Brascan  is  entitled  to  one seat on Sentry's Board of Directors or will
      participate  as  an  observer.


The  Debenture is secured by a general security interest over all the assets and
properties of Sentry.  The amount is subordinate to the existing CIT and Bank of
Montreal  credit  facilities.

The  proceeds  of  the financing, to be used primarily for working capital, were
allocated  between  the debenture ($1,835,000) and the warrants ($165,000) based
on  their  respective  fair values in accordance with EITF 00-27 (Application of
Issue 98-5 to Certain Convertible Instruments).  The difference between the face
value  of the debenture and the allocated value is being charged to interest and
financing  expenses  over  the  term  of  the  debenture.

Certain  other  warrants  to  purchase  425,000 shares of Sentry common stock at
exercise prices ranging from $0.18 to $0.20 per share were issued in conjunction
with  the convertible debenture.  The warrants are exercisable over one to three
years.  The  fair  value  of  these  warrants  ($49,000)  is  being  charged  to
operations  over  the  life  of  the  warrants.

As  a  condition  of  the  financing,  Sentry  also  acquired  ID  Systems.

Sentry's  Board of Directors and shareholders owning a majority of Sentry common
stock  approved  the  transaction  with  Brascan.

Sentry  requires  liquidity  and  working  capital  to  finance  increases  in
receivables  and  inventory  associated  with sales growth, payments to past due
vendors  and,  to a lesser extent, for capital expenditures.  We had no material
capital  expenditure  or  purchase  commitments  as  of  September 30, 2004.  We
anticipate  that  current  cash  reserves,  cash  generated by the operations of
Sentry  and  its new  ID Systems' subsidiaries and the financing provided by the
Brascan transaction and sale of stock to Saburah will be adequate to finance the
Company's  anticipated  working  capital  requirements as well as future capital
expenditure  requirements  for  at  least  the  next  twelve  months.


NOTE  D  --  Inventories
------------------------
Inventories  consist  of  the  following:
                              September  30,  2004          December  31,  2003
                              --------------------          -------------------
                                               (in  thousands)
Raw  materials                     $     1,159                   $     449
Work-in-process                            298                         283
Finished  goods                          1,927                       1,123
                                         -----                       -----
                                   $     3,384                   $   1,855
                                   =     =====                   =   =====

Reserves  for excess and obsolete inventory totaled $1,737,000 and $2,148,000 as
of September 30, 2004 and December 31, 2003, respectively and have been included
as  a  component  of  the  above  amounts.




NOTE  E  --  Credit  Facilities
-------------------------------
On April 30, 2004, Sentry's subsidiary, ID Security Systems Canada Inc., entered
into  credit  facilities  with  Bank  of  Montreal,  replacing its former credit
facility.  Facility  1  is a Canadian $1.5 million (U.S. $1.2 million) Overdraft
Lending  Facility, which is subject to certain limitations based on a percentage
of  eligible  accounts  receivable  and inventories as defined in the agreement.
Interest  on  the  overdraft facility is payable monthly at the Bank of Montreal
commercial  prime lending rate (3.75% at September 30, 2004), plus 1% per annum.
Facility  2  is  a Canadian $250,000 (U.S. $198,000) Non-Revolving Demand Credit
facility  incurred  to  refinance  an existing term loan with a previous lender.
Principal  payments  of  Canadian  $6,945  plus  interest are payable monthly in
arrears.  Borrowings  under  these  facilities  are  secured by the assets of ID
Systems.  At  September  30, 2004, approximately U.S. $1,030,000 was outstanding
under  the  Bank  of  Montreal  facilities.


NOTE  F  --  Related  Party  Transactions
-----------------------------------------
On  March  27,  2002,  Peter  Murdoch,  our President and CEO, exercised a stock
option  for  two  million  shares of Sentry common stock at an exercise price of
$0.06 per share, which was paid for through the issuance of a promissory note in
the  amount  of  $120,000.  The  principal of the note was secured by the option
shares  and was repayable no later than January 8, 2006.  The note bore interest
at  prime  less .75%.  Mr. Murdoch satisfied the note and accrued interest as of
March  31,  2004.  The  note  had been reflected as a reduction of shareholders'
equity  on  the  balance  sheet  as  of  December  31,  2003.



NOTE  G  --  Earnings  Per  Share
---------------------------------
The  earnings  per  share calculations (basic and diluted) at September 30, 2004
and 2003 are based upon the weighted average number of common shares outstanding
during  each  period.  There  are  no  reconciling  items  in  the  numerator or
denominator  of  the  earnings  per  share calculations in either of the periods
presented.  Options  to  purchase 1,499,948 and 1,598,424 shares of common stock
with  a  weighted  average exercise price of $0.59 and $0.57 were outstanding at
September 30, 2004 and 2003, but were not included in the computation of diluted
net  loss  per  share  because their effect would be antidilutive or immaterial.

The  Company  accounts  for  stock-based awards to employees using the intrinsic
value  method  in  accordance  with  Accounting Principles Board Opinion No. 25,
"Accounting  for  Stock  Issued  to  Employees."

SFAS  No.  123, Accounting for Stock-Based Compensation, requires the disclosure
of  pro forma net income and earnings per share had the Company adopted the fair
value  method  as of the beginning of fiscal 1995.  Under SFAS No. 123, the fair
value of stock-based awards to employees is calculated through the use of option
pricing  models,  even  though  such  models were developed to estimate the fair
value  of  freely  tradable,  fully  transferable  options  without  vesting
restrictions,  which  significantly  differ  from  the  Company's  stock options
awards.  These  models  also  require  subjective  assumptions, including future
stock  price  volatility and expected time to exercise, which greatly affect the
calculated  values.  No  options  were  granted  in  2004 or 2003.  The weighted
average  fair  value of the options granted for the year ended December 31, 2001
is  estimated  at  $0.05,  using the Black-Scholes option pricing model with the
following  weighted  average  assumptions:  expected  life  of five years; stock
volatility,  147%  in  2001;  risk  free  interest  rates,  4.8% in 2001, and no
dividends  during  the expected term.  The Company's calculations are based on a
multiple option valuation approach and forfeitures are recognized as they occur.

If  the  computed  fair  values  of  the  post 1995 awards had been amortized to
expense  over  the vesting period of the awards, pro forma net income attributed
to  common  shareholders  would  have  been  as  follows:

<TABLE>
<CAPTION>
                                                       Three Months Ended           Nine Months Ended
                                                          September 30,               September 30,
<S>                                                    <C>         <C>               <C>       <C>
                                                        2004          2003            2004      2003
                                                       ------      -------           -------   ------
                (in thousands, except per share data)

Net income (loss):
     As reported. . . . . . . . . . . . . . . . . . .  $   40      $   254           $ (141)   $ 290
     Pro forma. . . . . . . . . . . . . . . . . . . .  $   37      $   233           $ (154)   $ 254

Net income (loss) per share:
     As reported. . . . . . . . . . . . . . . . . . .  $ 0.00      $  0.00           $(0.00)   $0.00
     Pro forma. . . . . . . . . . . . . . . . . . . .  $ 0.00      $  0.00           $(0.00)   $0.00
</TABLE>



The  fair  value  of each option granted is estimated on the date of grant using
the Black-Scholes option-pricing model.  No options were granted in the three or
nine-month  periods  ended  September  30,  2004  or  2003.


NOTE  H  -Litigation  Settlement  and  Subsequent  Event
--------------------------------------------------------
On August 1, 2004, ID Systems and Checkpoint entered into a settlement agreement
effective  July  30,  2004,  pursuant  to  which Checkpoint agreed to pay $19.95
million  in full and final settlement of claims covered by antitrust litigation.
Payment  in  full  was  received  on  August  5,  2004.  As provided when Sentry
purchased  ID Systems, the proceeds of the settlement were distributed to former
shareholders  of  ID Systems, after payment of litigation fees and expenses. The
agreement  includes  mutual  releases between the parties for complaints arising
from  activities  prior to the date of the agreement, except for any contractual
obligations  and  any  future  claims  for  patent,  copyright  or  trademark
infringement.  The  agreement  is  not  an  acknowledgement of any wrongdoing or
liability  by  either  party. A Stipulation of Dismissal has been filed with the
Third  Circuit  Court  of  Appeals  to  finally  conclude the legal proceedings.
During  the third quarter of 2004, Sentry and its subsidiaries received $753,000
through  the  repayment  of  debt  incurred  by  Dialoc  prior to the ID Systems
acquisition  and  the  reimbursement  for  litigation  expenses.

While  Sentry  did  not obtain an interest in the litigation settlement, Saburah
and  Sentry  agreed  that  Sentry  might  require Saburah to purchase additional
Sentry  common shares equal to approximately 4.5% of any amount received (net of
legal  fees  and expenses) from Checkpoint.  The price per share has been set at
80%  of  the  previous  20 days trading average prior to the announcement of the
settlement.  Sentry's  Board of Directors exercised this option and based on the
settlement  amount,  Sentry sold to Saburah approximately 4.8 million shares for
$641,000  on  November  5,  2004.  The  transaction will be recorded in Sentry's
fourth  quarter  financial  statements.

After the acquisition of ID Systems and sale of additional shares as a result of
the  litigation  settlement, Sentry will have 120,548,804 shares of common stock
outstanding.  Mr.  Murdoch,  directly  or  indirectly  through  his ownership of
Saburah,  will  own  or control 49.5% of the outstanding common stock of Sentry.



Item 2.  Management's Discussion and Analysis of Financial Condition and Results
--------------------------------------------------------------------------------
of  Operations.
---------------

Certain  Factors  That  May  Affect  Future  Results
----------------------------------------------------

Information  contained  or  incorporated by reference in this periodic report on
Form  10-QSB  and  in  other  SEC  filings  by  Sentry contains "forward-looking
statements"  within  the meaning of the Private Securities Litigation Reform Act
of  1995  which can be identified by the use of forward-looking terminology such
as  "believes,"  "expects,"  "may,"  "will,"  "should"  or  "anticipates" or the
negative  thereof,  other  variations  thereon  or comparable terminology, or by
discussions  of  strategy.  These  forward-looking  statements  involve  certain
significant  risks  and  uncertainties, and actual results may differ materially
from the forward-looking statements. For further details and discussion of these
risks  and  uncertainties  see  Sentry  Technology  Corporation's  SEC  filings
including,  but  not  limited to, its annual report on Form 10-KSB. No assurance
can  be given that future results covered by the forward-looking statements will
be  achieved,  and  other  factors  could  also  cause  actual  results  to vary
materially  from  the future results covered in such forward-looking statements.
We  do  not  undertake  to  publicly update or revise any of our forward-looking
statements  even if experience or future changes show that the indicated results
or  events  will  not  be  realized.

Results  of  Operations:
------------------------

On  April  30,  2004, Sentry purchased from Saburah Investments, Inc. all of the
outstanding  common  shares  and  Series  "A"  preference  shares of ID Security
Systems Canada Inc., and all of the outstanding capital stock of ID Systems USA,
Inc.  (collectively,  "ID  Systems").  ID  Systems  is  a  Toronto based company
engaged  in  anti-shoplifting  technology,  security  labeling,  radio frequency
identification  (RFID),  access  control  and  library  security.  Our condensed
consolidated  statements  of  operations include the revenues and expenses of ID
Systems  from  May  1,  2004.

Consolidated  revenues  were  21%  higher in the both the quarter and nine month
periods  ended  September  30,  2004  than in the quarter and nine month periods
ended  September  30, 2003.  ID Systems' revenues for the third quarter and
five months ended September 30, 2004 were $1.5 and $2.4 million.  Our backlog of
orders,  which  we  expect  to  deliver  within the next twelve months, was $3.2
million at September 30, 2004 as compared to $4.4 million at September 30, 2003.
Total  revenues  for  the  periods  presented  are  broken  out  as  follows:
















<TABLE>
<CAPTION>
                                          Q-3       Q-3   %         9 Mos.  9 Mos.   %
<S>                            <C>              <C>      <C>      <C>       <C>     <C>
                                          2004     2003  Change       2004    2003  Change
                               ---------------  -------  -------  --------  ------  -------
                                        (in thousands)               (in thousands)

EAS . . . . . . . . . . . . .  $         1,783  $   490     264   $  3,390  $1,505     125
CCTV. . . . . . . . . . . . .              940      706      33      2,509   2,653      (5)
SentryVision. . . . . . . . .              708    1,420     (50)     2,500   2,279      10
                               ---------------  -------  -------  --------  ------  -------
Total sales . . . . . . . . .            3,431    2,616      31      8,399   6,437      30
Service revenues and other. .            1,146    1,168      (2)     3,365   3,247       4
                               ---------------  -------  -------  --------  ------  -------
Total revenues. . . . . . . .  $         4,577  $ 3,784      21   $ 11,764  $9,684      21
                               ===============  =======  =======  ========  ======  =======

</TABLE>

All of the increase in sales of EAS products in the third quarter and first nine
months  of  2004  was  attributable to ID Systems' sales, which totaled $1.5 and
$2.3  million of the respective totals. Sentry's historical comparative sales of
EAS  products  decreased  in  both  2004 periods presented. The increase in CCTV
sales  and  decrease  in  SentryVision  sales  in  the  third quarter of 2004 as
compared  to  the  third  quarter  of  2003  was a result of the mix of products
purchased  by  Lowe's  Home  Centers.  Total  revenues  from Lowe's Home Centers
decreased  $0.9  and  $0.2 million in the third quarter and first nine months of
2004  as  compared  to  the  same  periods  in  2003. Service revenues and other
decreased  in  the  third  quarter  of  2004  primarily  as  a  result  of lower
SentryVision  installations  than  in  the  third  quarter  of  2003.

Cost  of  sales  were  56%  and  54%  of total sales in the three and nine month
periods  ended September 30, 2004 compared to 57% and 62% in the same periods of
the  prior  year.  We  continued  to  see margin improvements as a result of the
outsourcing  of  all  significant  manufacturing  operations, which began in the
second  quarter  of  2003.  The  decrease in the cost of sales percentage in the
first  nine  months  of 2004 over the first nine months of 2003 is primarily the
result of the elimination of the charge to cost of sales of under absorbed fixed
overhead  costs due to the termination of in-house manufacturing and the move to
a  smaller  facility.

The  increase  in  customer service expenses in the third quarter and first nine
months  of 2004 is primarily a result of higher sales of systems we install.  We
have decreased the number of customer service employees and increased the use of
outside  service  contractors  in  order to better manage our total net customer
service  costs  during  fluctuations in activity levels from quarter to quarter.
However,  our  efforts  were  hampered  somewhat  by our inability to maintain a
proper  level  of  service  parts  due  to inadequate trade credit and financial
resources during the first six months of 2004, which resulted in inefficiencies.
As  a  result  of  our  recent  financing,  we  have restocked our service parts
inventory  enabling us to deliver service in a more timely and efficient manner.

Selling, general and administrative expenses were 9% and 14% higher in the three
and  nine  month  periods  ended  September  30,  2004 when compared to the same
periods  of the previous year.  This was primarily as a result of the ID Systems
merger,  which  represented  $342,000  and  $590,000  of  the  amounts reported,
respectively.  However, as a percentage of total revenues, total costs decreased
in  the  2004  periods.

The  increase  in  research  and development in the third quarter and first nine
months  of 2004 when compared to the third quarter and first nine months of 2003
is  also  attributable  to  the  ID  Systems  merger.

As  a  result of the restructuring of operations, the increase in sales activity
levels  and the merger with ID Systems, we were able to show operating income of
$232,000  and  $285,000  in the three and nine month periods ended September 30,
2004  as  compared  to  operating  profit  of  $67,000  and an operating loss of
$425,000  in  the  same  periods  of  2003.

Total interest and financing costs decreased in the third quarter and first nine
months  of  2004  as  a  result  of  lower  capital  lease  interest  due to the
cancellation  of  the  sale  and  leaseback agreement on our former headquarters
facility.  In  addition in the third quarter of 2004, as a result of the Brascan
Technology  investment,  we  were  able  to eliminate the costly financing costs
associated  with  purchase  order  financing.

On  July  9,  2003, Sentry entered into a settlement agreement with its landlord
regarding  the termination of its long-term capital and operating leases for its
current  facility  in  Hauppauge,  New  York.

The Company recognized an extraordinary gain of $212,000 (net of $141,000 income
taxes)  in  the  third  quarter of 2003, representing the difference between the
carrying  amounts  of  outstanding obligations to the landlord less the net book
value  of  the  property on the date of the settlement.  In the second and third
quarters  of 2003, the Company also entered into settlements with certain of its
vendors  for  past  due  obligations  which  resulted in a gain of approximately
$525,000  (net of $350,000 income taxes) which represents the difference between
the  amounts  due  before the settlement and the total amount payable, including
the  value  of  the  common  stock,  as  a  result  of  the  settlement.

In 2004, the income tax provisions result from taxable income of our ID Systems'
subsidiary, which cannot be offset by Sentry's net operating loss carryforwards.
In  2003,  the  $143,000  and  $348,000  income  tax provision recognized on the
extraordinary gain was offset by an equivalent income tax benefit generated from
the each period's loss from operations and the utilization of net operating loss
carryforwards.

As a result of the foregoing, Sentry had net income of $40,000 and a net loss of
$141,000  in  the  quarter  and  first  nine  months ended September 30, 2004 as
compared  to  net income of $254,000 and $290,000 in the quarter and nine months
ended  September  30,  2003.

Liquidity  and  Capital  Resources  as  of  September  30,  2004

As  a result of certain transactions detailed below, our financial condition has
substantially  strengthened.  Since  December  31, 2003, our working capital has
increased  from $(0.3) million to $3.6 million, total assets increased from $4.1
million  to $11.6 million and shareholders' equity increased from $(0.1) million
to  $3.5  million.  We  have  eliminated  the  use  of  expensive purchase order
financing  to  finance  inventory  purchases and we are beginning to reestablish
credit  with  new  and  existing  vendors.


In  the second quarter of 2003, to address our reduced revenue levels, decreased
financial  position  and  recurring  operating  losses,  our  Board of Directors
approved a restructuring plan to strengthen the Company's operating efficiencies
and  to better align its operations with current economic and market conditions.
We were successful in implementing many changes to our business plan during 2003
including the downsizing of operations and relocation to smaller facilities, the
negotiations  with past due trade creditors and former landlord, the outsourcing
of  manufacturing  and  the  expansion of our Service Partner program to augment
service  and installations.  The successful implementation of this restructuring
has  resulted  in  substantial  gross  margin  improvements  and  reductions  in
operating  expenses  beginning  after  the  first  quarter  of  2003.

Over  the  last  several years, our largest shareholder, Dialoc ID Holdings B.V.
("Dialoc")  was  not  able  to provide us with additional financial support.  On
April  19,  2004,  Dialoc  sold  39,066,927  Sentry  common shares (representing
approximately  46%  of  the  total issued and outstanding shares of Sentry) to a
group of investors.  Of the group, Saburah Investments Inc. ("Saburah") acquired
22,758,155  shares,  Mr.  Robert  Furst 14,554,386 shares and Dr. Morton Roseman
1,754,386  shares.  Peter  L. Murdoch, President, CEO and Director of Sentry, is
the  owner  of  Saburah.  Mr.  Furst  is also a long-standing member of Sentry's
Board of Directors.  As a result of this transaction, Messers Angel and de Nood,
Principals  of  Dialoc,  resigned  from  Sentry's  Board  of  Directors.


In  addition  to  the  purchase of Sentry's common shares, Saburah also acquired
100% of ID Security Systems Canada, Inc. and ID Systems USA Inc. ("ID Systems").
ID  Systems  is  a Toronto based company engaged in anti-shoplifting technology,
security  labeling,  radio  frequency  identification (RFID), access control and
library  security.  The  price  paid to Dialoc by Saburah and Murdoch for Sentry
and  ID  Systems  shares  in  cash,  debt  assumption and other consideration is
approximately  $3.6  million  plus  the  surrender  of Murdoch's 15% interest in
Dialoc.  Saburah has also agreed to make a payment to Dialoc in the future equal
to  approximately  6%  of  any  payment it receives from Checkpoint Systems Inc.
resulting  from  litigation  brought  by  ID  Canada  against  Checkpoint.

On  April  30, 2004, Sentry purchased from Saburah Investments, Inc., an Ontario
corporation,  all  of  the  outstanding  common shares and Series "A" preference
shares  of  ID  Security Systems Canada Inc., an Ontario corporation, and all of
the  outstanding  capital  stock  of  ID  Systems  USA,  Inc.,  a  Pennsylvania
corporation  (collectively,  "ID  Systems").  ID  Systems  is  a  Toronto  based
company  engaged  in  anti-shoplifting  technology,  security  labeling,  radio
frequency  identification  (RFID),  access control and library security.  Sentry
acquired  ID  Systems  from  Saburah  in  exchange  for 30,000,000 Sentry common
shares.  The  price  paid  per Sentry share for the securities of ID Systems was
valued  at  approximately  $0.11.  A  special  committee  of  Sentry's  Board of
Directors  received an opinion from Corporate Valuation Services confirming that
the price paid for the acquisition of ID Systems was fair from the point of view
of  Sentry  shareholders.  Sentry's Board of Directors and shareholders owning a
majority  of  Sentry  common  stock  approved  the  acquisition  of  ID Systems.

The  purchase  price  of  the  acquisition  was  approximately  $3.4  million
representing $3.3 million in the value of Sentry common stock issued and $0.1 in
transaction  expenses.  Sentry  acquired $1.7 million in net tangible assets and
assigned  the  remaining  $1.7 million to goodwill. (See Note B to the condensed
consolidated  financial  statements).  On an ongoing basis, Sentry will evaluate
the  carrying  value of the goodwill versus the discounted cash benefit expected
to  be realized from the performance of the underlying operations and adjust for
any  impairment  in  value.



Other  benefits  flowing to Sentry/ID Systems via the purchase of ID Systems are
as  follows:

-     ID  Systems  and Sentry continue as the exclusive distributor in North and
South  America  for  a  period  of  five years for all Dialoc products including
Laserfuse  radio  frequency  security  labels  and  all  RFID  products.
-     Dialoc  becomes  the  exclusive  distributor  in Europe and Asia of labels
manufactured  by  ID  Systems'  security  label manufacturing subsidiary, Custom
Security  Industries  Inc.  ("CSI").
-     CSI  acquires  the right to purchase Laserfuse raw material for processing
into  finished  security labels in its Toronto plant in order to reduce the cost
of  production.
-     CSI acquires the option to purchase a non-exclusive license to manufacture
complete  Laserfuse  security  labels  for  a  period of 10 years subject to the
payment  of  $500,000  and  a  running  royalty  of  $0.001  per  label.
-     Dialoc  will  continue  to  be  a dealer for Sentry products in Europe and
Asia.

On  April  30,  2004, ID Systems entered into new credit facilities with maximum
availability  of  Canadian  $1.75  million  (U.S. $1.4 million) with the Bank of
Montreal.  The  facilities  provide  working  capital  for  ID  Systems  and all
borrowings  are  secured  by  the  assets  of  ID  Systems.


We continued to pursue additional debt or equity financing through our financial
advisors  and  on  April  30,  2004,  Sentry  entered  into a $2,000,000 secured
convertible  debenture  with Brascan Technology Fund ("Brascan"), an alternative
investment  fund  established  by  Brascan  Asset Management, to invest in early
stage,  technology-based  companies with high growth potential.  The proceeds of
the  financing  will  be  used  primarily  for  working  capital.

Key  terms  of  the  transaction  are  as  follows:

-     Four-year  term.
-     Interest  rate  of  8%.
-     Redeemable  at  Sentry's  option  after  18  months.
-     Conversion  price equal to the market price, at time of conversion, less a
discount  of  30%  with  a  maximum  conversion  price  of  $0.12  per  share.
-     Conversion is at the option of Brascan when market share price is equal to
or  greater  than  $0.17  per  share  or  with the approval of Sentry's Board of
Directors  when  the  market  share  price  is  less  than  $0.17  per  share.
-     Sentry  will  provide  most  favored pricing to all Brascan affiliates and
expects  to be a supplier of security and identification products to the Brascan
affiliates.
-     Brascan  was  issued warrants for 5,000,000 shares of Sentry common stock,
priced  at  $0.15  per  share,  exercisable  anytime within the next four years.
-     Brascan  is  entitled  to  one seat on Sentry's Board of Directors or will
participate  as  an  observer.

The  Debenture is secured by a general security interest over all the assets and
properties of Sentry.  The amount is subordinate to the existing CIT and Bank of
Montreal  credit  facilities.

Sentry  also  acquired  ID  Systems  as  a  condition  of  the  financing.

Sentry's  Board of Directors and shareholders owning a majority of Sentry common
stock  approved  the  transaction  with  Brascan.

As  of  September 30, 2004, we had borrowings of approximately $1.9 million with
CIT,  the  maximum amount available under the revolving credit facility and $1.0
million  with the Bank of Montreal.  Through the first half of 2004, most of our
trade  vendors  continued  to  require  cash  in advance or COD payments for our
purchases.  Prior  to the Brascan financing, we had to supplement our borrowings
under  the  CIT  credit facility with expensive purchase order financing through
EPK Financial Corporation ("EPK").  As a result of the Brascan financing, during
the  second  quarter of 2004, we repaid all amounts owed to EPK and discontinued
our  use  of  this  facility.

On August 1, 2004, ID Systems and Checkpoint entered into a settlement agreement
effective  July  30,  2004,  pursuant  to  which Checkpoint agreed to pay $19.95
million  in  full  and  final  settlement  of  claims  covered  by the antitrust
litigation.  Payment  in  full  was received on August 5, 2004. As provided when
Sentry  purchased ID Systems, the proceeds of the settlement will be distributed
to  former  shareholders  of  ID  Systems,  after payment of litigation fees and
expenses.  The  agreement  includes  mutual  releases  between  the  parties for
complaints  arising  from  activities prior to the date of the agreement, except
for  any  contractual obligations and any future claims for patent, copyright or
trademark  infringement.  The  agreement  is  not  an  acknowledgement  of  any
wrongdoing  or  liability  by  either  party.  A  Stipulation  of Dismissal has
been  filed  with  the Third Circuit Court of Appeals to finally conclude  the
legal  proceedings.

While  Sentry  did  not obtain an interest in the litigation settlement, Saburah
and  Sentry  agreed  that  Sentry  might  require Saburah to purchase additional
Sentry common shares equal to approximately 4.5% of any amount received  (net of
legal fees and expenses) from Checkpoint.  The price per share was set at 80% of
the  previous  20  days  trading  average  prior  to  the  announcement  of  the
settlement.  Our  Board  of Directors has exercised this option and based on the
settlement  amount, Sentry will sell to Saburah approximately 4.8 million shares
for $641,000.  We received the funds from Saburah in November 2004 and the stock
sale will be recorded in the fourth quarter of 2004.  Sentry also was reimbursed
for  legal  costs  advanced  by  ID  Systems,  as  well  as  for loans and trade
receivables  of  approximating $753,000, which was received in the third quarter
of  2004.  These  transactions,  totaling $1.4 million, represent the total cash
flowing to Sentry directly and indirectly as a result of the Checkpoint lawsuit.

After the acquisition of ID Systems and sale of additional shares as a result of
the  litigation  settlement, Sentry will have 120,548,804 shares of common stock
outstanding.  Mr.  Murdoch,  directly  or  indirectly  through  his ownership of
Saburah,  will  own  or control 49.5% of the outstanding common stock of Sentry.

We  will  require  liquidity  and  working  capital  to  finance  increases  in
receivables  and  inventory  associated  with sales growth, payments to past due
vendors  and,  to  a lesser extent, for capital expenditures. We had no material
capital  expenditure  or  purchase  commitments  as  of  September  30, 2004. We
anticipate  that  current  cash  reserves,  cash  generated by the operations of
Sentry  and  its new ID Systems' subsidiaries, as well as the financing provided
by  the Brascan transaction and the sale of stock to Saburah will be adequate to
finance the Company's anticipated working capital requirements as well as future
capital  expenditure  requirements  for  at  least  the  next  twelve  months.


Related  Party  Transactions
----------------------------
Details  of  related  party  transactions  are  included  in Note F of this Form
10-QSB.


Item  3.  Controls  and  Procedures

As  of  the  end  of  the  period  covered  by  this  report,  Sentry Technology
Corporation  carried  out  an  evaluation,  under  the  supervision and with the
participation  of  the  Company's  management,  including  the  Company's  Chief
Executive  Officer  and  Chief  Financial  Officer,  of the effectiveness of the
design  and  operation  of  the  Company's  disclosure  controls  and procedures
pursuant  to Rule 13a-15 of the Securities and Exchange Act of 1934.  Based upon
that  evaluation,  the  Chief  Executive  Officer  and  Chief  Financial Officer
concluded that the Company's disclosure controls and procedures are effective in
timely  alerting  them  to  material  information related to the Company that is
required to be included in Sentry Technology Corporation's periodic SEC filings.

There  has  been  no  change  in  the  Company's internal control over financial
reporting during the period covered by this report that has materially affected,
or  is  reasonable  likely  to materially affect, the Company's internal control
over  financial  reporting.

<PAGE>



SENTRY  TECHNOLOGY  CORPORATION
PART  II  -  OTHER  INFORMATION


Item  6  -  Exhibits  and  Reports  on  Form  8-K

(a)     Exhibits:

31.1  -  Certification by the Chief Executive Officer Pursuant to Section 302 of
the  Sarbanes-Oxley  Act  of  2002.

31.2  -  Certification by the Chief Financial Officer Pursuant to Section 302 of
the  Sarbanes-Oxley  Act  of  2002.

32.1  -  Certification  by  the  Chief  Executive  Officer Pursuant to 18 U.S.C.
Section  1350  Adopted  Pursuant  to  Section  906  of the Sarbanes-Oxley Act of
2002.***

32.2  -  Certification  by  the  Chief  Financial  Officer Pursuant to 18 U.S.C.
Section  1350  Adopted  Pursuant  to  Section  906  of the Sarbanes-Oxley Act of
2002.***

***     In  accordance  with Item 601(b)(32)(ii) of Regulation S-K, this exhibit
shall not be deemed "filed" for the purposes of Section 18 of the Securities and
Exchange  Act of 1934 or otherwise subject to the liability of that section, nor
shall  it be deemed incorporated by reference in any filing under the Securities
Act  of  1933  or  the  Securities  Exchange  Act  of  1934.

(b)    Reports on Form 8-K - On July 14, 2004, we filed a Current Report on Form
8-K  disclosing  a)  the  acquisition  from Saburah Investments, Inc. an Ontario
corporation,  of  all of the outstanding common shares and Series "A" preference
shares  of  ID  Security Systems Canada Inc., an Ontario corporation, and all of
the  outstanding  capital  stock  of  ID  Systems  USA,  Inc.,  a  Pennsylvania
corporation, and b) a $2,000,000 investment in the Company by Brascan Technology
Fund.

On  August  10,  2004,  we  filed a Current Report on Form 8-K disclosing a) the
settlement  of the ID Systems and Checkpoint Systems antitrust litigation and b)
the  $1,400,000  cash  infusion  expected  from  the reimbursement of litigation
expenses,  the  repayment  of  debt from former ID Systems' shareholders and the
sale  of  Sentry  stock  to  Saburah  Investments  Inc.


<PAGE>


SIGNATURES


Pursuant  to  the  requirements  of the Securities and Exchange Act of 1934, the
registrant  had  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.

                                  SENTRY  TECHNOLOGY  CORPORATION
                                  -------------------------------


Date:  November  15,  2004        By:  /s/ PETER  J.  MUNDY
       -------------------             -----------------------
                                       Peter  J.  Mundy,  Vice  President
                                       Finance  and  Chief  Financial  Officer
                                       (Principal  Financial  and  Accounting
                                               Officer)




































































<PAGE>
SECTION  302  CERTIFICATION:


Exhibit  31.1

                            CERTIFICATION PURSUANT TO
                                 SECTION 302 OF
                         THE SARBANES-OXLEY ACT OF 2002

Certification  of  CEO

I,  Peter  L.  Murdoch,  certify  that

1.   I  have  reviewed this quarterly report on Form 10-QSB of Sentry Technology
Corporation;

2.     Based  on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officer  and  I  are  responsible  for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-15(e)  and  15d-15(e)) for the registrant and we have:

a)     designed  such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

b)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  and presented in this report our conclusions about the effectiveness
of  the  disclosure controls and procedures, as of the end of the period covered
by  this  report  based  on  such  evaluation;  and

c)     disclosed  in this report any change in the registrant's internal control
over  financial  reporting  that  occurred  during  the registrant's most recent
fiscal  quarter  that  has  materially  affected,  or  is  reasonably  likely to
materially  affect,  the registrant's internal control over financial reporting;
and

5.  The registrant's other certifying officer and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
registrant's  board  of  directors  (or  persons  performing  the  equivalent
function):

a)     all  significant  deficiencies  and  material weaknesses in the design or
operation  of  internal  controls  over financial reporting which are reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize  and  report  financial  information;  and

b)     any  fraud,  whether  or  not material, that involves management or other
employees  who  have  a  significant role in the  registrant's internal controls
over  financial  reporting.


                          /s/  PETER  L.  MURDOCH
                          -------------------------------------------------
                          Peter  L.  Murdoch
                          President  and  Chief  Executive  Officer

                          November  15,  2004


















<PAGE>


SECTION  302  CERTIFICATION:


Exhibit  31.2

                            CERTIFICATION PURSUANT TO
                                 SECTION 302 OF
                         THE SARBANES-OXLEY ACT OF 2002

Certification  of  CFO

I,  Peter  J.  Mundy,  certify  that

1.   I  have  reviewed this quarterly report on Form 10-QSB of Sentry Technology
Corporation;

2.     Based  on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;

3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officer  and  I  are  responsible  for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-15(e)  and  15d-15(e)) for the registrant and we have:

a)     designed  such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

b)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  and presented in this report our conclusions about the effectiveness
of  the  disclosure controls and procedures, as of the end of the period covered
by  this  report  based  on  such  evaluation;  and

c)     disclosed  in this report any change in the registrant's internal control
over  financial  reporting  that  occurred  during  the registrant's most recent
fiscal  quarter  that  has  materially  affected,  or  is  reasonably  likely to
materially  affect,  the registrant's internal control over financial reporting;
and

5.  The registrant's other certifying officer and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
registrant's  board  of  directors  (or  persons  performing  the  equivalent
function):

a)     all  significant  deficiencies  and  material weaknesses in the design or
operation  of  internal  controls  over financial reporting which are reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize  and  report  financial  information;  and

b)     any  fraud,  whether  or  not material, that involves management or other
employees  who  have  a  significant role in the  registrant's internal controls
over  financial  reporting.


                              /s/  PETER  J.  MUNDY
                            -------------------------------------------------

                              Peter  J.  Mundy
                              Vice  President  and  Chief  Financial  Officer

                              November  15,  2004















<PAGE>


SECTION  906  CERTIFICATION:


Exhibit  32.1


                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                               ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



CERTIFICATION OF CEO

In  connection  with  the Quarterly Report of Sentry Technology Corporation (the
"Company")  on Form 10-QSB for the period ended September 30, 2004 as filed with
the  Securities  and  Exchange  Commission  on the date hereof (the Report"), I,
Peter  L.  Murdoch, Chief Executive Officer of the Company, certify, pursuant to
Section 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act  of  2002,  that:

(1)     The  Report  fully  complies  with the requirements of Section 13(a) and
15(d)  of  the  Securities  Exchange  Act  of  1934;  and

(2)     The information contained in the Report fairly presents, in all material
respects,  the  financial  condition  and  results of operations of the Company.



                           /s/  PETER  L.  MURDOCH
                          -------------------------------------------------

                          Peter  L.  Murdoch
                          President  and  Chief  Executive  Officer

                          November  15,  2004


A  signed  original  of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature that
appears  in  typed  form  within  the  electronic  version  of  this     written
statement  required by Section 906, has been provided to the Company and will be
retained  by the Company and furnished to the Securities and Exchange Commission
or  its  staff  upon  request.

This  certification  accompanies  this Report on Form 10-QSB pursuant to Section
906  of  the  Sarbanes-Oxley  Act  of  2002  and shall not, except to the extent
required  by such Act, be deemed filed by the Company for purposes of Section 18
of  the Securities Exchange Act of 1934, as amended  (the "Exchange Act").  Such
certification will not be deemed to be incorporated by reference into any filing
under the Securities Act of 1933, as amended, or the Exchange Act, except to the
extent  that  the  Company  specifically  incorporates  it  by  reference.



























<PAGE>

SECTION  906  CERTIFICATION:


Exhibit  32.2


                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                               ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



CERTIFICATION OF CFO

In  connection  with  the Quarterly Report of Sentry Technology Corporation (the
"Company")  on Form 10-QSB for the period ended September 30, 2004 as filed with
the  Securities  and  Exchange  Commission  on the date hereof (the Report"), I,
Peter  J.  Mundy,  Chief  Financial Officer of the Company, certify, pursuant to
Section 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act  of  2002,  that:

(1)     The  Report  fully  complies  with the requirements of Section 13(a) and
15(d)  of  the  Securities  Exchange  Act  of  1934;  and

(2)     The information contained in the Report fairly presents, in all material
respects,  the  financial  condition  and  results of operations of the Company.



                              /s/  PETER  J.  MUNDY
                          -------------------------------------------------

                              Peter  J.  Mundy
                              Vice  President  and  Chief  Financial  Officer

                              November  15,  2004


A  signed  original  of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature that
appears  in  typed  form  within  the  electronic  version  of  this     written
statement  required by Section 906, has been provided to the Company and will be
retained  by the Company and furnished to the Securities and Exchange Commission
or  its  staff  upon  request.

This  certification  accompanies  this Report on Form 10-QSB pursuant to Section
906  of  the  Sarbanes-Oxley  Act  of  2002  and shall not, except to the extent
required  by such Act, be deemed filed by the Company for purposes of Section 18
of  the Securities Exchange Act of 1934, as amended  (the "Exchange Act").  Such
certification will not be deemed to be incorporated by reference into any filing
under the Securities Act of 1933, as amended, or the Exchange Act, except to the
extent  that  the  Company  specifically  incorporates  it  by  reference.