SATO announces fiscal year 2008 third quarter results

2/18/2009

Singapore, February 18, 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 financial results for the third quarter of fiscal year 2008; the consolidated sales for April to December 2008 was JPY 61.4billion (US$ 597million), declining by 7.7% from the same period last fiscal year, while the operating income was JPY 1.9billion (US$ 18million), decreased by 55.1% from the year-earlier.

Mirroring the unprecedented economic and financial market downturns, there has been a dramatic curtailment of our customers' spending and investments especially in the manufacturing sectors which represent a high proportion of the company's revenue. Global demand for hardware products has further weakened, affecting sales in the United States, Europe and Asia. Sales earnings further dipped by JPY 2.2billion (US$ 21million) as a result of the appreciation of the Japanese yen against the U.S. dollar and other currencies.

Effects of the market upheaval also affected the overall profitability of the organization, resulting in operating losses in Europe and Asia Pacific, as well as mitigating the results of the ongoing restructuring efforts in Europe.

Commenting on the results, SATO International Managing Director Kaz Matsuyama said, "The slower than expected results of our European restructuring is disappointing. However, we continue to work towards completing the process as soon as possible. Moving forward, we are firmly focused on activities to grow market segments that are performing well in the face of the recession such as food and healthcare, as well as provide environmentally friendly solutions. We will capitalize on our knowledge solutions to enable our customers to optimize operations, reduce costs and increase productivity and efficiency."

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 = 102.92 Japanese Yen

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, 2008, it reported revenues of US$767 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 = 114.43 Japanese Yen.

Contact:
Chee Shin Yee (Ms)
Communications 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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