HKF Hancock Fabrics

Hancock Fabrics Inc. (NYSE: HKF), today reported that sales in the five-week period ended December 31, 2005 totaled $48.3 million compared with $49.9 million in the same period of the prior year. Sales in comparable stores decreased 4.9% in December. In the first two months of the fourth quarter, total sales were $86.4 million versus $91.1 million a year ago, and comparable store sales were down 6.8%. Year-to-date, total sales were $371.4 million in 2005 and $395.9 million in 2004. Comparable store sales in the eleven months to date decreased 7.0%. 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.