HKF Hancock Fabrics

Hancock Fabrics, Inc. (NYSE:HKF), today reported that sales in the four-week period ended August 27, 2005 totaled $29.3 million compared with $30.7 million in the same period of the prior year. Sales in comparable stores decreased 6.3% in August. In the first seven months of fiscal 2005, total sales were $210.4 million versus $225.6 million in the same period of fiscal 2004. Comparable store sales decreased 7.3% for this seven-month period. Jane Aggers, Chief Executive Officer, commented, "Our stores have now completed the makeover process, and we continue to ship new merchandise assortments from our distribution center to the stores in preparation for the fall selling season." Hancock also reported that nine stores remain closed due to Hurricane Katrina, while the Company's distribution center and corporate offices were unaffected. Hancock Fabrics, Inc. is a specialty retailer of fabric and related home sewing and decorating accessories. The Company operates 447 retail fabric stores in 43 states and operates an internet store under the domain name, www.hancockfabrics.com.