SATO announces record sales for 2007 first half-year results

Singapore, November 26, 2007 - 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 2007; the consolidated sales for April to September 2007 was the highest ever for a half-year result of SATO, with US$365million, up by 7.5% from last year’s, while the operating income was US$20million, up by 9.7% from last year’s.

Outside of Japan, printer unit shipment marked a strong 50% increase from last year’s first half. The overseas sales grew 12% versus last year, driven primarily by increased deals from the transportation and retail industries in the US, and upward trend in Thailand and China economy especially in manufacturing sector. On the other hand, the operating income (up by US$2 million from last year) was negatively impacted by continued restructuring efforts put into formerly acquired Checkpoint / METO businesses in Europe; however we view this as necessary one-time cost for sustainable future returns.

“While the European restructuring remains as our key challenge, our business is growing strongly on a global basis and we are confident that all necessary restructuring measures in Europe can be completed within this fiscal year so as to further accelerate our growth momentum,” 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 this News Release is based on an average exchange rate of :
1US Dollar = 119.39 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, 2007, it reported revenues of US$705 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


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