CHARLOTTE, NC – July 27, 2011 – SATO, a leader in barcode printing, labeling, and EPC/RFID solutions, announced today that SATO Corporation will change to a pure holding company structure effective October 3, 2011. As a result of the newly formed holding company, SATO Holdings, six new subsidiary companies will be established as follows:

• SATO Corporation
• SATO Communications Co., Ltd.
• SATO Printing Co., Ltd.
• SATO Techno Lab Co., Ltd.
• SATO Mechatronics Co., Ltd.
• SATO Quality Assurance Co., Ltd.

The new parent company, SATO Holdings, will oversee these new subsidiaries as well as the following existing subsidiaries: SATO System Support Co. Ltd., In/Out Co., Ltd., Sankyo Printing Co., Ltd., SATO Printing Technology Center Co., Ltd., SATO Logistics Co., Ltd., SATO Intellectual Property Institute Co., Ltd., SATO Operations Support Co., Ltd., SATO Business Service Co., Ltd., and SATO Material Co., Ltd.

The restructuring decision was approved by members of the Board and shareholders at meetings held on April 27, 2011 and June 24, 2011.

This decision enables SATO Holdings to delegate greater power and responsibility to its sales, production, and management groups and empowers them to assign capable employees to appropriate positions of responsibility. The structural corporate change also allows each subsidiary the flexibility to assign management resources in a swift and decisive way to respond to changing market conditions and profitable opportunities.