HAUPPAUGE, N.Y., Sept. 19 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) announced today that it has signed a
lease for its new corporate headquarters located in Ronkonkoma, NY and expects
to move by the end of September. This change was made possible following an
agreement with its current landlord to terminate the remaining 13 years on the
lease for the building it occupies in Hauppauge, NY. Sentry will pay a portion
of the back rent owing on the Hauppauge building over three years. In
addition, the landlord has been paid one million Sentry common shares.
This transaction will result in a one time pretax gain for Sentry of
approximately $353,000 arising from the forgiveness by the landlord of certain
amounts owing and the accounting treatment related to the termination of the
lease. The move is part of a comprehensive plan to restructure Sentry and will
contribute approximately $200,000 annually in reduced operating expenses.
"Moving to a new facility is an important step in the restructuring of the
Company," said Peter L. Murdoch, President and CEO of Sentry Technology
Corporation. "The combination of this move and restructuring supplier debt
reduces our net liabilities by $734,000 and further reduces operating expenses
going forward. In total, once we have completed the move, we estimate that at
least $2,000,000 will be eliminated from our annual operating budget in the
form of reduced rent, taxes, maintenance, insurance, manufacturing costs and
employee expenses when compared to 2002. Despite the many changes at Sentry,
customer service and product quality are being maintained. This is clearly the
result of the exceptional effort on the part of Sentry's employees and
managers."
Sentry Technology Corporation designs, manufactures, sells and installs a
complete line of Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems
and Closed Circuit Television (CCTV) solutions. The CCTV product line
features SentryVision(R), SmartTrack, a proprietary, patented traveling
Surveillance System. The Company's products are used by retailers to deter
shoplifting and internal theft and by industrial and institutional customers
to protect assets and people. The Company's partnership with Dialoc ID
Holdings BV expands the Company's product offering to include RFID and
proximity Access Control solutions. For further information please visit our
website at http://www.sentrytechnology.com.
SOURCE Sentry Technology Corporation
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Related links:
http://www.sentrytechnology.com
Company News On-Call:
http://www.prnewswire.com/comp/494538.html
CONTACT:
Peter L. Murdoch, President & CEO of Sentry
Technology Corporation, +1-631-232-2100
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