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 March 31, 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  May 12, 2004, there were 115,750,363 shares of Common Stock outstanding.




<PAGE>





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


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

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

Item  1.     Financial  Statements  (Unaudited)

     Consolidated  Balance  Sheets  --
     March  31,  2004  and  December  31,  2003                     3

     Condensed  Consolidated  Statements  of  Operations  --
     Three  Months  Ended  March  31,  2004  and  2003              4

     Condensed  Consolidated  Statements  of  Cash  Flows  --
     Three  Months  Ended  March  31,  2004  and  2003              5

     Notes  to  Condensed  Consolidated  Financial
     Statements  --  March  31,  2004                            6  -  9


Item  2.     Management's  Discussion  and  Analysis  of
     Financial  Condition  and  Results  of  Operations          9  -  13

Item  3.     Controls  and  Procedures                             14



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

Item  6.     Exhibits  and  Reports  on  Form  8-K                 14


Signatures                                                         15










<PAGE>



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

Item  1.     Financial  Statements  (Unaudited)

SENTRY  TECHNOLOGY  CORPORATION
CONSOLIDATED  BALANCE  SHEETS
(In  thousands)

<TABLE>
<CAPTION>
                                                                 March 31,    December 31,
<S>                                                             <C>          <C>
                                                                      2004            2003
                                                                -----------  --------------
ASSETS
--------------------------------------------------------------
CURRENT ASSETS
  Cash and cash equivalents. . . . . . . . . . . . . . . . . .  $      181   $         210
  Accounts receivable, less allowance for doubtful
     accounts of $312 and $304, respectively . . . . . . . . .       1,763           1,482
  Inventories. . . . . . . . . . . . . . . . . . . . . . . . .       1,976           1,855
  Prepaid expenses and other current assets. . . . . . . . . .         121             126
                                                                -----------  --------------
    Total current assets . . . . . . . . . . . . . . . . . . .       4,041           3,673

PROPERTY, PLANT AND EQUIPMENT, net . . . . . . . . . . . . . .         176             209
OTHER ASSETS . . . . . . . . . . . . . . . . . . . . . . . . .         204             211
                                                                -----------  --------------

                                                                $    4,421   $       4,093
                                                                ===========  ==============

LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------------------------------
CURRENT LIABILITIES
  Revolving line of credit and term loan . . . . . . . . . . .  $    1,934   $       1,515
  Accounts payable . . . . . . . . . . . . . . . . . . . . . .         728             566
  Accrued liabilities. . . . . . . . . . . . . . . . . . . . .       1,525           1,601
  Obligations under capital leases -   current portion . . . .           5               5
  Deferred income. . . . . . . . . . . . . . . . . . . . . . .         226             271
                                                                -----------  --------------
    Total current liabilities. . . . . . . . . . . . . . . . .       4,418           3,958

NOTES PAYABLE. . . . . . . . . . . . . . . . . . . . . . . . .         186             247
OBLIGATIONS UNDER CAPITAL LEASES -
  non-current portion. . . . . . . . . . . . . . . . . . . . .          12              13
                                                                -----------  --------------
    Total liabilities. . . . . . . . . . . . . . . . . . . . .       4,616           4,218

SHAREHOLDERS' EQUITY
  Common stock . . . . . . . . . . . . . . . . . . . . . . . .          86              86
  Additional paid-in capital . . . . . . . . . . . . . . . . .      44,660          44,658
  Accumulated deficit. . . . . . . . . . . . . . . . . . . . .     (44,941)        (44,749)
  Note receivable from shareholder                                     ---            (120)
                                                                -----------  --------------
    Total shareholders' equity (deficit) . . . . . . . . . . .        (195)           (125)
                                                                -----------  --------------
                                                                $    4,421   $       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>

                                                                      Three Months Ended
                                                                           March 31,
                                                               ------------------------------
<S>                                                            <C>                   <C>
                                                                              2004      2003
                                                               --------------------  --------
REVENUES. . . . . . . . . . . . . . . . . . . . . . . . . . .  $             2,946   $ 3,574

COSTS AND EXPENSES:
  Cost of sales . . . . . . . . . . . . . . . . . . . . . . .                  941     1,652
  Customer service expenses . . . . . . . . . . . . . . . . .                1,015     1,121
  Selling, general and administrative expenses. . . . . . . .                  897       945
  Research and development. . . . . . . . . . . . . . . . . .                  160       160
                                                               --------------------  --------

                                                                             3,013     3,878
                                                               --------------------  --------

OPERATING LOSS. . . . . . . . . . . . . . . . . . . . . . . .                  (67)     (304)

INTEREST AND FINANCING EXPENSES . . . . . . . . . . . . . . .                  125       190
                                                               --------------------  --------

LOSS BEFORE INCOME TAXES. . . . . . . . . . . . . . . . . . .                 (192)     (494)

INCOME TAXES                                                                   ---       ---
                                                               --------------------  --------

NET LOSS. . . . . . . . . . . . . . . . . . . . . . . . . . .  $              (192)  $  (494)
                                                               ====================  ========

NET LOSS PER SHARE
          Basic and diluted . . . . . . . . . . . . . . . . .  $             (0.00)  $ (0.01)
                                                               ====================  ========

WEIGHTED AVERAGE SHARES
          Basic and diluted . . . . . . . . . . . . . . . . .               85,756    82,259
                                                               ====================  ========


See notes to the condensed consolidated financial statements.






</TABLE>


<PAGE>




























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


<TABLE>
<CAPTION>
                                                                     Three Months Ended
                                                                          March 31,
                                                               ----------------------------
<S>                                                            <C>                   <C>
                                                                              2004    2003
                                                               --------------------  ------
CASH FLOWS FROM OPERATING ACTIVITIES:
-------------------------------------------------------------
  Net loss. . . . . . . . . . . . . . . . . . . . . . . . . .  $              (192)  $(494)
  Adjustments to reconcile net loss
     to net cash provided by operating activities:
     Depreciation and amortization. . . . . . . . . . . . . .                   36     103
     Provision for bad debts. . . . . . . . . . . . . . . . .                   10      13
  Changes in operating assets and liabilities:
     Accounts receivable. . . . . . . . . . . . . . . . . . .                 (291)    202
     Inventories. . . . . . . . . . . . . . . . . . . . . . .                 (121)    688
     Accounts payable and other liabilities . . . . . . . . .                   14      (5)
                                                               --------------------  ------

    Net cash (used in) provided by operating activities . . .                 (544)    507
                                                               --------------------  ------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant and equipment, net                               ---     (14)
  Intangibles . . . . . . . . . . . . . . . . . . . . . . . .                   (3)     (1)
                                                               --------------------  ------

    Net cash used in investing activities . . . . . . . . . .                   (3)    (15)
                                                               --------------------  ------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net borrowings (payments) under the revolving line
     of credit and term loan. . . . . . . . . . . . . . . . .                  419    (531)
  Proceeds of bridge loan                                                      100     ---
  Repayment of obligations under capital leases . . . . . . .                   (1)    (31)
  Proceeds from sale of stock, net                                             ---       5
                                                               --------------------  ------

    Net cash provided by (used in) financing activities . . .                  518    (557)
                                                               --------------------  ------

DECREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . .                  (29)    (65)

CASH AND CASH EQUIVALENTS, at beginning of period . . . . . .                  210     266
                                                               --------------------  ------
CASH AND CASH EQUIVALENTS, at end of period . . . . . . . . .  $               181   $ 201
                                                               ====================  ======


See notes to the condensed consolidated financial statements.





</TABLE>

<PAGE>



SENTRY  TECHNOLOGY  CORPORATION
NOTES  TO  CONDENSED  CONSOLIDATED  FINANCIAL  STATEMENTS
MARCH  31,  2004


NOTE  A  --  Basis  of  Presentation
------------------------------------
Sentry  Technology  Corporation  ("Sentry"),  a  Delaware  Corporation,  was
established  to effect the merger of Knogo North America Inc. ("Knogo N.A.") and
Video Sentry Corporation ("Video Sentry"), which was consummated on February 12,
1997.  The  merger resulted in Knogo N.A. and Video Sentry becoming wholly owned
subsidiaries  of  Sentry.  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  --  Financial  Condition  and  Liquidity
-------------------------------------------------
To  address  our  reduced  revenue  levels,  decreased  financial  position  and
recurring operating losses, our Board of Directors approved a 2003 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
following:

-     Significantly  downsized  our  operations  including  the  elimination  of
      approximately  55  of  117  positions  as  of  March  7,  2003.
-     Negotiated  a  settlement  with  past  due  trade  vendors.
-     Negotiated  with  the  previous  landlord  to  move  out  of its Hauppauge
      corporate  facility  and  relocated  its corporate offices to a smaller
      and less costly  facility.
-     Dedicated  a  substantial  portion  of  our  remaining  resources  towards
      maintaining  and  improving  our  relationships  with  our 30 largest
      customers.
-     Outsourced  all  non-essential  manufacturing  and  assembly operations to
      qualified  subcontractors.
-     Further  expanded  our  Service  Partner  program  to  augment service and
      installations  performed  by  our  employees.

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.

As  of March 31, 2004, we had borrowings of approximately $1.9 million with CIT,
the  maximum  amount available under the revolving credit facility.  Most of our
trade vendors continue to require cash in advance or COD payments for purchases.
Therefore,  we  continued  to  supplement  our  borrowings  under the CIT credit
facility  with  purchase  order  financing  through  EPK  Financial  Corporation
("EPK").  At  March 31, 2004, the amount owed to EPK was approximately $307,000.


NOTE  C  --  Subsequent  Events  and  Capital  Transactions
-----------------------------------------------------------
Over  the  last  several years, our largest shareholder, Dialoc ID Holdings B.V.
("Dialoc") has not been 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 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,  have  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.  ID Canada
has  appealed the reduction of the original jury award of $79.2 million and they
are  awaiting  the  decision  of  the  Court  of  Appeals.

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.

As a condition of the financing, Sentry also acquired ID Security Systems Canada
Inc.  ("ID  Canada")  and  ID  Systems USA Inc., collectively referred to as "ID
Systems."

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

Simultaneously  with  the  Brascan  financing,  Sentry  acquired ID Systems from
Saburah  in  exchange  for  30,000,000 Sentry common shares.  The price paid per
Sentry  share  has  been  valued  at  approximately  $0.12.  An opinion has been
provided  to  a  special  committee  of Sentry's Board of Directors by Corporate
Valuation Services confirming that both the price paid for the acquisition of ID
Systems  and  the agreed conversion price of the Brascan debt were fair from the
point  of  view  of  Sentry  shareholders.  Although  Sentry  will not obtain an
interest  in  the  Checkpoint Systems litigation, Saburah and Sentry have agreed
that  Sentry  may  require Saburah to purchase additional Sentry shares equal to
approximately  4.5%  of  any  amount  received  by  Saburah  from the Checkpoint
litigation, to a maximum of $1,000,000.  The price per share has been set at 80%
of  the  previous  20  days  trading average if and when the call is made.  This
transaction represents the maximum future benefit that may flow to Sentry and ID
Systems  as  a  result  of  the  Checkpoint  lawsuit.


SENTRY  TECHNOLOGY  CORPORATION
NOTES  TO  CONDENSED  CONSOLIDATED  FINANCIAL  STATEMENTS
MARCH  31,  2004


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.

After  the  acquisition  of  ID Systems, Sentry has 115,750,363 shares of common
stock outstanding.  Mr. Murdoch, directly or indirectly through his ownership of
Saburah,  now  owns or controls 47.4% 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 March 31, 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  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:
                             March  31,  2004            December  31,  2003
                             ----------------            -------------------
                                           (in  thousands)
Raw  materials               $     486                      $     449
Work-in-process                    356                            283
Finished  goods                  1,134                          1,123
                                 -----                          -----
                             $   1,976                      $   1,855
                             =   =====                      =   =====


Reserves  for excess and obsolete inventory totaled $2,046,000 and $2,148,000 as
of  March 31, 2004 and December 31, 2003, respectively and have been included as
a  component  of  the  above  amounts.



NOTE  E  --  Related  Party  Transactions
-----------------------------------------
As  a  result  of  the  Dialoc ID investment, Sentry entered into a distribution
agreement with Dialoc ID, which contemplates a two-way distribution relationship
between  the  companies.  Under  the  agreement,  Sentry  has the rights to sell
Dialoc  ID's  EAS,  access  control and RFID products and accessories and Sentry
gives  Dialoc  ID  the rights to sell its EAS and CCTV products and accessories.
Pricing  for  products  under the agreements are at the lowest prices charged to
affiliates.  Purchases  from  Dialoc  ID were $35,000 and $1,000 in the quarters
ended  March  31,  2004 and March 31, 2003, respectively.  Services and sales to
Dialoc ID were $16,000 and $4,000 in the quarters ended March 31, 2004 and 2003,
respectively.  The  net  amount  payable  to  Dialoc ID as of March 31, 2004 was
$12,000.

In  addition, 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.

On  January 22, 2004, Robert Furst, a Sentry Director, made a bridge loan to the
Company in the amount of $100,000.  The loan bears interest at a rate of 15% per
annum  and was due on or before April 30, 2004.  As additional consideration for
the  loan,  Mr.  Furst  received  a warrant to purchase 300,000 shares of Sentry
common  stock  at  a price of $0.17 per share, which was the market price on the
date  of  grant  (valued at $3,000).  The warrant expires January 21, 2009.  The
note, which is included in accrued liabilities at March 31, 2004,  was repaid in
full  on  April  30,  2004.


NOTE  F  --  Earnings  Per  Share
---------------------------------
The  earnings  per  share calculations (basic and diluted) at March 31, 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 1,581,924 and 1,653,884 shares of common stock
with  a  weighted  average exercise price of $0.57 were outstanding at March 31,
2004  and 2003, but were not included in the computation of diluted net loss per
share  because  their  effect  would  be  antidilutive.

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:


                                   2004               2003
                                   ----               ----
                           (In  Thousands, Except Per Share Amounts)
    Net  loss:
         As  reported        $     (192)         $     (494)
         Pro  forma                (198)               (513)

    Net  loss  per  share:
         As  reported        $        -          $     (0.01)
         Pro  forma          $        -          $     (0.01)


<PAGE>


SENTRY  TECHNOLOGY  CORPORATION
MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND
RESULTS  OF  OPERATIONS


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:
------------------------

Consolidated revenues were 18% lower in the quarter ended March 31, 2004 than in
the  quarter ended March 31, 2003.  As part of our restructuring plan and due to
the  limitations  of  our  financial  resources, we reduced the number of direct
salespersons  from  thirteen  to  four,  whose  efforts  are supplemented by six
in-house  sales  support  staff  and two independent sales representatives.  Our
backlog  of  orders,  which  we expect to deliver within the next twelve months,
decreased  to  $3 million at March 31, 2004 as compared to $3.6 million at March
31,  2003.  Total  revenues for the periods presented are broken out as follows:

                                              Q-1       Q-1       %  Change

                                             2004      2003       Incr (Decr)
                                             ----      ----       -----------
                                             (in  thousands)

EAS                                       $   448    $   425           5
CCTV                                          599      1,477         (59)
SentryVision                                  735        373          97
Access  Control                                36          -         100
3M  library  products                           -         45        (100)
                                          -------    -------     -------
Total  sales                                1,818      2,320         (22)
Service  revenues  and  other               1,128      1,254         (10)
                                          -------    -------     -------
Total  revenues                           $ 2,946    $ 3,574         (18)
                                          =======    =======     =======

Direct  sales  of EAS products were slightly higher in the first quarter of 2004
as  compared  to  the  same period in the prior year as a result higher sales of
reusable  tags.  The  decrease  in  CCTV sales is a result of lower sales to two
customers.  We  had  sales of $0.5 million to Home Depot in the first quarter of
2003,  which did not repeat in 2004 and we lost $0.5 million in revenues in 2004
from a significant customer that decided to source directly their purchases from
the  CCTV  manufacturers  this year.  Direct sales of SentryVision  increased in
2004,  including  sales  to  Target,  Reno Depot and Lane Limited.  Sales to our
largest customer, Lowe's Home Centers, for our SentryVision  Smart Track systems
and CCTV equipment in the first quarter of 2004 was approximately the same as in
the in the first quarter of 2003.  We terminated our distribution agreement with
3M  for library products as of the end of 2002; however, the final installations
were  completed  in first quarter of 2003.  Service revenues and other decreased
in the first quarter primarily as a result of lower installation revenue than in
the  first  quarter  of  2004.



SENTRY  TECHNOLOGY  CORPORATION
MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND
RESULTS  OF  OPERATIONS


Cost  of sales were 52% of total sales in the three month period ended March 31,
2004  compared  to  71%  in  the  same  period  of  the prior year.  Part of our
restructuring  plan  for  2003  included  the  outsourcing  of  all  significant
manufacturing  operations.  The  decrease in the cost of sales percentage in the
first  quarter  of 2004 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  as  of  the  end  of  the  first  quarter  of 2003.

Customer  service expenses, as a percentage of service revenues, increased 1% in
the  first  quarter  of 2004 as compared to the first quarter of 2003. Through a
combination  of  a  decrease  in  the  number  of customer service employees and
increased  use  of  outside  service contractor costs, we continue to be able to
lower  total  net  customer  service  costs  to compensate for the lower revenue
levels  in  the  first  three  months  of  2004.

Selling,  general  and administrative expenses were 12% lower in the three month
period  ended  March  31,  2004 when compared to the same period of the previous
year primarily as a result of lower facility costs and payroll costs partly as a
result  of  the  headcount  reduction  as  of  March  7,  2003.

In dollar terms, we dedicated the same amount to research and development in the
first  quarter  of  2004  when compared to the first quarter of 2003, however it
increased  as  a  percentage  of  revenues.

Total  interest  and  financing  costs  decreased  in the first quarter of 2004,
principally  as a result of lower capital lease interest due to the cancellation
of  the  sale  and  leaseback  agreement  on  our  former headquarters facility.

Due to net operating losses, we have not provided for income taxes in any of the
periods  of  presented.

As  a  result  of  the  foregoing,  Sentry had a net loss of $0.2 million in the
quarter  ended  March  31, 2004 as compared to a net loss of $0.5 million in the
quarter  ended  March  31,  2003.


Liquidity  and  Capital  Resources  as  of  March  31,  2004
------------------------------------------------------------

To  address  our  reduced  revenue  levels,  decreased  financial  position  and
recurring operating losses, our Board of Directors approved a 2003 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
following:

-     Significantly  downsized  our  operations  including  the  elimination  of
      approximately  55  of  117  positions  as  of  March  7,  2003.
-     Negotiated  a  settlement  with  past  due  trade  vendors.
-     Negotiated  with  the  previous  landlord  to  move  out  of its Hauppauge
      corporate  facility  and  relocated  its corporate offices to a smaller
      and less costly  facility.
-     Dedicated  a  substantial  portion  of  our  remaining  resources  towards
      maintaining  and  improving  our  relationships  with  our 30 largest
      customers.
-     Outsourced  all  non-essential  manufacturing  and  assembly operations to
      qualified  subcontractors.
-     Further  expanded  our  Service  Partner  program  to  augment service and
      installations  performed  by  our  employees.

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.

As  of March 31, 2004, we had borrowings of approximately $1.9 million with CIT,
the  maximum  amount  available under the revolving credit facility. Most of our
trade vendors continue to require cash in advance or COD payments for purchases.
Therefore,  we  continued  to  supplement  our  borrowings  under the CIT credit
facility  with  purchase  order  financing  through  EPK  Financial  Corporation
("EPK").  Funding  entails  EPK providing funds directly to vendors to allow the
Company to secure the inventory needed to fulfill customer orders. Our costs for
each  financing  transaction  has ranged from to 2.75% to 2% of Sentry's selling
price,  plus  1.85%  on  the maximum outstanding funded amount each ten calendar
days or portion thereof, until EPK is paid in full, plus expenses. In connection
with this facility, an Intercreditor Agreement was entered into between EPK, the
CIT  Group/Business  Credit, Inc. ("CIT"), with whom we have a revolving line of
credit,  and  Sentry.  Under  this  agreement,  CIT  subordinated its rights and
interests in the collateral related to each transaction to EPK. Currently, under
the  terms  of  the Intercreditors Agreement, the maximum amount subordinated to
EPK  at  any  time  is limited to $650,000. During the first quarter of 2004, we
funded  $0.7  million  in inventory purchases under this facility as compared to
$0.3 million in the first quarter of 2003. Sentry uses the funds provided by EPK
to  fund  vendor purchases to complete orders currently in backlog. At March 31,
2004,  the  amount  owed  to  EPK  was  approximately  $307,000.


Over  the  last  several years, our largest shareholder, Dialoc ID Holdings B.V.
("Dialoc")  has  not  been 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,  have  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.  ID Canada
has  appealed the reduction of the original jury award of $79.2 million and they
are  awaiting  the  decision  of  the  Court  of  Appeals.

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.

As a condition of the financing, Sentry also acquired ID Security Systems Canada
Inc.  ("ID  Canada")  and  ID  Systems USA Inc., collectively referred to as "ID
Systems."

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

Simultaneously  with  the  Brascan  financing,  Sentry  acquired ID Systems from
Saburah  in  exchange  for  30,000,000 Sentry common shares.  The price paid per
Sentry  share  has  been  valued  at  approximately  $0.12.  An opinion has been
provided  to  a  special  committee  of Sentry's Board of Directors by Corporate
Valuation Services confirming that both the price paid for the acquisition of ID
Systems  and  the agreed conversion price of the Brascan debt were fair from the
point  of  view  of  Sentry  shareholders.  Although  Sentry  will not obtain an
interest  in  the  Checkpoint Systems litigation, Saburah and Sentry have agreed
that  Sentry  may  require Saburah to purchase additional Sentry shares equal to
approximately  4.5%  of  any  amount  received  by  Saburah  from the Checkpoint
litigation,  to  a  maximum  of  $1,000,000.




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.

ID  Systems  will  add  new products and growth opportunities with approximately
$6.5  million  in  revenues, $4.5 million in assets and $700,000 in EBITDA based
upon  2003 performance.  ID Systems' management including Dr. Roseman, President
of  CSI,  and  Mr.  Murdoch  invested  $100,000  each  to  complete the proposed
transaction  between  Saburah and Dialoc.  Mr. Furst invested $900,000 of equity
in  the  combined  transaction.  Mr.  Robert  Furst is a long-standing member of
Sentry's  Board of Directors.   On completion of these transactions and prior to
Brascan's  conversion  of the proposed $2,000,000 debt transaction, Mr. Murdoch,
directly  or  indirectly  through  his ownership of Saburah, will own or control
47.4%  of  the  outstanding  common  stock  of  Sentry.

We  delayed  the  first  payment  due  on  the  notes due to the vendors that we
negotiated  settlements  with last year until we obtained the Brascan financing.
On  May  7,  2004,  we paid approximately $37,000 to the holders of these notes.

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 March 31, 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  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.  As  a result of the financing, Sentry will no
longer  need  to  use  the expensive purchase order financing provided by EPK in
order  to  finance  inventory  purchases.  As  well,  by agreement with CIT, the
previous  monthly  costs  for  outside  management  consultants  will  also  be
eliminated  as  of May 2004.  During the past 12 months purchase order financing
costs  were  $414,000  and  management  consultant  fees  were  $124,000.


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



SENTRY  TECHNOLOGY  CORPORATION


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.


Item 5.  Other Information.

See Note C to the condensed consolidated financial statements.




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 February 27, 2004, we filed a Current
Report  on  Form  8-K  disclosing  the financial results of the quarter and year
ending  December  31,  2003.

          On  March  10,  2004, we filed a Current Report on Form 8-K disclosing
the signing of a term sheet with a major North American Venture fund to raise $2
million  in  secured  convertible  debt  and  to  acquire  ID  Systems.



<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:  May  14,  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

                              May  14,  2004
















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

                              May  14,  2004



















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 March 31, 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

                              May  14,  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 March 31, 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

                              May  14,  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.