"The seven security personnel have been released by their kidnappers in Sinai," military spokesman Ahmed Aly said in a statement carried by the official MENA agency.
"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 yesterday.
The kidnappers were heavily armed with SAM anti-aircraft missiles and heavy machine guns, interior minister Mohamed Ibrahim said yesterday.
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Witnesses in Sinai spoke of increased military movement in the peninsula yesterday, as a military helicopter circled above.
Authorities had also raised the state of alert in hospitals and emergency services ahead of a possible showdown with the kidnappers.
The capture of the security personnel piled pressure on Islamist President Mohamed Morsi, whose 11-month rule has been marked by violent clashes, political turmoil and a devastating economic crisis.
Tension has been running high in the lawless peninsula since the kidnapping which was followed by two attacks on or near police camps in north Sinai.