HKF Hancock Fabrics

Hancock Fabrics, Inc. (NYSE:HKF), today reported that sales in the 28-day period ended February 25, 2006 totaled $29.6 million compared with $31.4 million in the 27-day period ended February 26, 2005. The current year period has one day more than 2005, because the Company changed its fiscal period-ends from Sunday to Saturday in 2005. The effect of having one more day in February 2006 was approximately $.7 million. Same store sales declined 7.3% in February, comparing the same 28 days of both years. Additionally, the Company provided an update to its recent press release that announced a re-inventory of all stores prior to finalizing results for its year ending January 28, 2006. The inventory process began on February 19, 2006 and is scheduled to continue through April 15, 2006. Accordingly, this will delay the filing of the Company's Annual Report on Form 10-K beyond its due date of April 13, 2006. Hancock will strive to file its 10-K in late May 2006 and will provide updates if the schedule changes. About Hancock Fabrics: Hancock Fabrics, Inc. - America's Fabric Store - is committed to serving creative enthusiasts with a complete selection of fashion and home decorating fabrics, sewing accessories, needlecraft supplies and sewing machines. The Company operates 442 retail stores in 43 states and an Internet store at www.hancockfabrics.com.