SATO Corporation Announces Revised Preliminary Earnings and Structural Reforms

4/7/2009

Singapore, April 7, 2009 - SATO Corporation, a pioneer in the Automatic Identification and Data Collection (AIDC) industry and a leader in barcode printing, labeling, and EPC/RFID solutions, announced its revised preliminary consolidated earnings forecast for the year ended March 31 with a net loss of 1.9 billion yen versus the last forecast net loss of 800 million yen, and the dissolution of its wholly-owned subsidiary and international headquarters, SATO International Pte Ltd (SATO International).

The downward revision in the consolidated earnings was largely due to the incremental cost of the accelerated re-structuring exercise for its loss-making European operation, together with the revaluation losses from elimination of deferred tax assets, one-time amortization of goodwill and provision for bad debts to stay financially prudent against the worldwide economic downturn.

In order to optimize SATO’s group-wide organizational effectiveness to improve its profitability for the future, SATO International will be dissolved on the 30th of September 2009 and all of its business functions will be integrated into SATO Corporation. The integration will help drive efficiencies in the business processes and create a more cohesive global organization going forward.

Market development and customer based operations such as sales and post-sales services will remain focused on the four geographical regions – Japan, Asia/Oceania, Europe, and the Americas. Current Managing Director of SATO International, Kaz Matsuyama, will continue to take overall sales responsibilities for outside Japan. All current regional and local sales offices remain unchanged, and will have the added advantage of the expertise and support from the globally integrated SATO organisation.

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

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:
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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