We present a neural model for olfactory sensory memory in the honeybee's antennal lobe. To investigate the neural mechanisms underlying odor discrimination and memorization, we exploit a variety of morphological, physiological, and behavioral data. The model allows us to study the computational capacities of the known neural circuitry, and to interpret under a new light experimental data on the cellular as well as on the neuronal assembly level. We propose a scheme for memorization of the neural activity pattern after stimulus offset by changing the local balance between excitation and inhibition. This modulation is achieved by changing the intrinsic parameters of local inhibitory neurons or synapses.