"The seven security personnel have been released by their kidnappers in Sinai," military spokesman Ahmed Aly said in a Wednesday statement.
"The seven are on their way to Cairo following their release, which came as a result of efforts by Egyptian military intelligence in coordination with tribal leaders in Sinai," Aly said.
Egyptian troops and policemen had begun sweeps of north Sinai on Tuesday.
The kidnappers were heavily armed with SAM anti-aircraft missiles and heavy machineguns, interior minister Mohamed Ibrahim said on Tuesday.
He said there were no negotiations with the kidnappers, who were demanding the release of jailed Bedouin militants, but tribal leaders were working to persuade the gunmen to release the hostages.