HKF Hancock Fabrics

Hancock Fabrics, Inc. (NYSE:HKF), today reported that sales in the four-week period ended July 30, 2005 totaled $26.0 million compared with $28.1 million in the same period of the prior year. Sales in comparable stores decreased 7.9% in July. In the second quarter, total sales were $83.3 million versus $89.8 million a year ago, and comparable store sales declined 8.1%. Year-to-date, total sales were $181.1 million in 2005 and $194.9 million in 2004, while comparable store sales decreased 7.5%. Hancock will provide an update as to the status of its re-merchandising efforts when it releases second quarter earnings after the market closes on August 16, 2005. A conference call to discuss the quarter's results is scheduled for Wednesday, August 17, 2005, at 9:00 a.m. (CDT). To listen, log on to www.hancockfabrics.com, click on "Investor Relations," then "Conference Call." A replay of the call will be available on the Company's web site through August 24 and via telephone by dialing 888-286-8010 (US) or 617-801-6888 (Int'l) and using passcode 29186092. To listen to the call you will need Windows Media Player. Hancock Fabrics, Inc. is a specialty retailer of fabric and related home sewing and decorating accessories. The Company operates 446 retail fabric stores in 43 states and operates an internet store under the domain name, www.hancockfabrics.com.