SATO Announces fiscal year 2008 Full-Year Results

5/19/2009

Singapore, May 19, 2009 - SATO, a pioneer in the Automatic Identification and Data Collection (AIDC) industry and a leader in barcode printing, labelling, and EPC/RFID solutions announced its fiscal 2008 results for the year ended March 31, 2009. Consolidated net sales declined by 11.0% to JPY 78.2billion (US$ 776million). The sales decline was broad-based across all geographic regions, with a 25% decrease outside of Japan reflecting an unfavorable foreign exchange impact at JPY 3.3billion (US$ 33million). Operating income was down 84.9% to JPY 0.8billion (US$ 8million) due to accelerated re-engineering for improving financial position of its loss-making operations in Europe.

As highlighted in the announcement in April on the revised preliminary earnings and structural reforms, SATO has decided to optimise its worldwide group operations by dissolving the entity of SATO International and integrating its functions into SATO Corporation in September 2009. Tax effect accounting for capitalization of deferred tax has been applied to the dissolution of SATO International and, as a result, its net income was JPY 2.1billion (US$ 20million).

”Our near term efforts are focused on driving group-wide operational effectiveness and simplification, enhancing customer value, and continuing to make necessary investments for future growth. While fiscal 2009 remains a very challenging year for us, we are confident of our long term growth prospect,” said Kaz Matsuyama, Managing Director of SATO International.

For Investor Relations, please visit http://www.satoworldwide.com/investor-relations.aspx

*Conversion used in the above news release is based on an average exchange rate of 1US Dollar = 100.71 Japanese Yen.

*Some figures in the above news release were amended on 29 May 2009 due to corrections to financial results announced by SATO Corporation.

About SATO
SATO is a pioneer in the Automatic Identification and Data Collection (AIDC) industry and the inventor of the world’s first electronic thermal transfer barcode printer. It revolutionised the barcoding industry by introducing the Data Collection System (DCS) & Labelling concept – a total barcode and labelling solution providing high quality barcode printers, scanners/hand-held terminals, label design software and consumables. SATO is one of the first in the industry to introduce a complete, multi-protocol EPC-compliant, UHF RFID solution.

SATO is publicly listed on the first section of Tokyo Stock Exchange in Japan. It has worldwide offices in the United States, Belgium, France, Germany, Spain, United Kingdom, Poland, Singapore, Malaysia, Australia, New Zealand, Thailand and China. For the fiscal year ended March 31, 2009, it reported revenues of US$776 million.

About SATO International
SATO’s international global headquarters, SATO International Pte. Ltd. is located in Singapore. Previously an international division, it was incorporated as a holding company in Singapore in 2001 to oversee the sales, marketing and customer services activities of all its Group Member Companies. More information about SATO International can be found at www.satoworldwide.com

*Conversion is based on an average exchange rate of 1US Dollar = 100.71 Japanese Yen.


Contact:
Yuji Shimizu (Mr)
Senior Manager, Corporate Planning
SATO International PTE. LTD.
438A, Alexandra Road #05-01/04
Alexandra Technopark
Singapore 119967
Tel: (65) 6271-2122
Fax: (65) 6271-2151
Email: communications@sato-int.com

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