SATO announces record sales for 2007 full-year results

Singapore, May 26 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 year ended March 31, 2008; the net sales was JPY 87.8 billion (US$767 million), up 6.4% from last year. This has enabled SATO to achieve record net sales for 9 consecutive years. However, the slowdown of economy, increase of label raw material cost due to rise in oil prices, as well as delays in European reengineering have resulted in operating income of JPY 5.4 billion (US$47 million), down 5.1% from last year.

Outside of Japan, SATO built on the momentum from last fiscal year where the acquisition of Checkpoint / METO and Walker Datavision businesses in 2006 contributed to SATO’s expansion worldwide. The company saw a steady growth in 2007, especially in Asia Pacific. Strong performance in Thailand and China was achieved on the strength of their Japanese customer base, while Australia and New Zealand broadened the range of SATO offering with the launch of traceability solution Label&Track™. Meanwhile, sales to retail and transportation were solid in the US, where the acquisition of TrakIT also allowed the pursuit of stronger solution sales based on the unique identification technologies. Europe saw a very positive growth in Eastern European countries, though performance was brought down by losses in Spain and Germany. The reengineering exercise in these 2 countries is ongoing and is expected to strengthen capabilities and turnaround the business this fiscal year.

“This year we expect to expand market share in our best performing vertical segments. Realising the synergy benefits yet to be optimized and remaining globally focused are among priorities. And so is the completion of the turnaround in Europe, with emphasis on Spain and Germany,” 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 = 114.43 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:
Yuji Shimizu
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