SATO announces 2008 first half-year results

Singapore, November 21, 2008 - 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 first half of fiscal year 2008; the consolidated sales for April to September 2008 was JPY 42.8billion (US$ 403million), declined by 1.8% from year-earlier, while the operating income was JPY 1.8billion (US$ 17million), down by 25.3% from the previous.

Despite the volatility of the global economy, SATO achieved 2.5% growth in Japan sales, continuing to show market presence by enabling customers to maximise their data capturing methods and operational efficiency. However, outside Japan, SATO faced several challenges including a slowdown in demand, with lower revenues further exacerbated by severely fluctuating exchange rates. Sales of consumables remained fairly stable, but hardware sales were heavily affected in industrial sectors, thus diminishing the momentum of our ongoing restructuring efforts in Europe. SATO is reviewing all possible areas of accounting procedures in Europe to restore the financials to a prudent and conservative state.

“These are challenging times. However, customers’ drive for efficiency and enhanced productivity will continue to create opportunities for SATO. Our "Data Collection Systems (DCS) & Labelling" business model enables operational optimisation and cost reduction, allowing customers to remain competitive. We will focus our efforts on offering innovative solutions grounded in this proven business approach to sustain our success in the long run,” said Kaz Matsuyama, Managing Director of SATO International.

For Investor Relations, please visit http://www.sato.co.jp/english/ir/index.html

*Conversion used in the above News Release is based on an average exchange rate of 1US Dollar = 106.12 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. More information about SATO Corporation can be found at www.sato.co.jp/english

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
Communications Manager
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