HKF Hancock Fabrics

Hancock Fabrics, Inc. (NYSE: HKF), today reported that sales in the four-week period ended January 28, 2006 totaled $31.7 million compared with $30.8 million in the same period of the prior year. Sales in comparable stores increased 4.5% in January. In the fourth quarter, total sales were $118.1 million versus $121.9 million a year ago, and comparable store sales were down 4.0%. In the full year, total sales were $403.1 million in 2005 and $426.7 million in 2004, while comparable store sales decreased 6.2% in 2005. Hancock Fabrics, Inc. is a specialty retailer serving the creative enthusiast with a wide selection of fabric and related home sewing and decorating accessories. The Company operates 443 retail fabric stores in 43 states and operates an internet store under the domain name, www.hancockfabrics.com.