The Islamic State terror group claimed the attack in which a group of militants in 4x4 vehicles attacked an army security point in North Sinai, following which a gun-battle broke out between the forces and the terrorists, army spokesperson Brigadier General Mohamed Samir said.
Egypt banned all 4x4 vehicles in army-operation zones in Sinai in July 2015.
The militants targeted a military base about 80 kilometres east of the Suez Canal, local media reported.
"The armed forces assert that these despicable acts will not deter it from its duty of protecting the great Egyptian people," Samir said in a statement.
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Security forces have launched combing operations in the area to find if any assailants escaped.
Egypt has has been battling Islamist militancy that primarily targeted policemen, judges and military personnel.
The militants are led by a local affiliate of the Islamic State group.
Since the 2011 revolution that toppled president Hosni Mubarak from power, North became the main stage of many violent attacks.
More than 700 security personnel have been killed in violence since then.
The military has launched security campaigns in the area, arrested suspects and demolished houses that belong to terrorists, including those facilitating tunnels leading to the Gaza Strip.