Sato posts record increase in consolidated midterm results

SINGAPORE – December 23, 2003 – In the first half of fiscal year 2004 ended September 30, 2003, SATO Corporation, listed on the First Section of the Tokyo Stock Exchange, posted a 5.3 percent increase in net sales of ¥28.3 billion, the company’s largest consolidated midterm increase ever.

These results were sustained by two main factors – SATO’s successful implementation of its Data Collection Systems (DCS) and Labelling business module for its overseas markets and the surge in demand of barcoding solutions in the Japanese market. New regulation such as the introduction of a new recycling law that requires new labelling systems, increased demand from the medical industry, expanded use of traceability systems and an increase in the adoption of AIDC systems for inventory control in the manufacturing industry have all contributed to increased demand in Japan.

The introduction of new products has also helped SATO increase its portfolio in meeting the diverse needs of its customers. The company launched IC tag printers and other new printers such as TASSHA, a latest standalone printer targeted at food processing industry this year, and it anticipates strong demand for these products moving forward. Revenues from mechatronics and consumable supply goods have steadily increased since the beginning of the fiscal year.

According to Mr. T. Waki, Director and Vice President, SATO Corporation, “SATO has been very active this year in promoting our products thorough various channels such as our business partners and the media. To further raise awareness in the marketplace, we participated in the major vertical trade shows such as those in the food & beverage, medical and RFID industries.”

The successful restructuring of SATO’s sales organization outside of Japan also led to its improved financial performance. The restructuring of SATO’s European and North American sales organizations centred on expansion of sales and marketing capabilities.

“Our sales activities outside of Japan, which were focused on the DCS and labelling operations, were propelled by campaigns where we aggressively marketed the SATO brand and reinforced both dealer and direct sales channels. These efforts led to our participation in new sales pitches and customer wins”, added Mr. Waki.

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About Barcode SATO International (BSI)

Barcode SATO International (BSI), the global sales headquarters of SATO Corporation, is a world leader of automatic identification products including barcode printers. BSI was incorporated in 2001 to oversee and support sales, marketing and customer service activities at all group member companies. As part of its expansion plans, BSI is rapidly strengthening its own team, as well as that of its overseas group member companies. BSI is the driving force behind SATO Corporation’s global branding strategy and expansion into new markets and territories.


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) and Labelling concept – a total barcode and labelling solutions approach providing high quality barcode printers, scanners/hand held terminals, label design software and consumables. SATO is a public listed company in Japan and has worldwide offices in United States, Germany, United Kingdom, Poland, Belgium, Singapore, Malaysia, Thailand and China. SATO reported revenues of US$445 million in 2002. SATO stock is traded on first section of Tokyo Stock Exchange. More information can be found at www.sato.co.jp.