SATO announces record sales for 2007 first quarter results

Singapore, August 29, 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 quarter of fiscal year 2007; the consolidated sales for April to June 2007 was the highest ever for a quarterly result of SATO, with US$180million, up by 8.8% from the year-earlier quarter, while the operating income was US$11million, up by 10.6% from the year-earlier quarter.

In Japan, sales for the three-month period continued to grow steadily, especially in the food processing and retail industries. Outside of Japan, growth was driven by increased sales to the transportation and retail industries in the US and Europe, while Oceania contributing to Asia-Pacific turning in a good performance.

Continuous efforts to raise profit margins in printers and consumables paid off with an improved profit. The weakening of Japanese yen was also a factor that contributed to increased profitability.

“The first quarter results confirm that SATO is building on the momentum created by the record performance of last fiscal year, and we are confident that all regions will deliver for this fiscal year as well,” 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 = 120.81 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