HKF Hancock Fabrics

Hancock Fabrics, Inc. (NYSE: HKF), today reported that sales in the four-week period ended October 28, 2006 totaled $34.3 million, compared to $37.0 million in the same period of the prior year. The decrease in total sales was due to having 41 fewer stores this year and a decline in comparable store sales of 1.4% in October. In the third quarter, total sales were $97.0 million versus $103.9 million in the same period of fiscal 2005, and comparable store sales declined 1.5%. Year-to-date, total sales were $276.6 million in 2006 and $285.0 million in 2005. Comparable store sales in the nine months to date declined 0.7%, including a 3.7% benefit from 40 stores that had been liquidated by the end of August in connection with store closing sale events and two other stores that are in the process of being liquidated. �Our apparel and quilting/craft categories continued to be bright spots during October. However, the gains in those areas were more than offset by declines in the home decorating area,� said Jane Aggers, Chief Executive Officer. Hancock Fabrics, Inc. � America's Fabric Store � is committed to serving creative enthusiasts with a complete selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. The Company operates 405 retail stores in 40 states and an Internet store at www.hancockfabrics.com. Hancock Fabrics, Inc. (NYSE: HKF), today reported that sales in the four-week period ended October 28, 2006 totaled $34.3 million, compared to $37.0 million in the same period of the prior year. The decrease in total sales was due to having 41 fewer stores this year and a decline in comparable store sales of 1.4% in October. In the third quarter, total sales were $97.0 million versus $103.9 million in the same period of fiscal 2005, and comparable store sales declined 1.5%. Year-to-date, total sales were $276.6 million in 2006 and $285.0 million in 2005. Comparable store sales in the nine months to date declined 0.7%, including a 3.7% benefit from 40 stores that had been liquidated by the end of August in connection with store closing sale events and two other stores that are in the process of being liquidated. "Our apparel and quilting/craft categories continued to be bright spots during October. However, the gains in those areas were more than offset by declines in the home decorating area," said Jane Aggers, Chief Executive Officer. Hancock Fabrics, Inc. - America's Fabric Store - is committed to serving creative enthusiasts with a complete selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. The Company operates 405 retail stores in 40 states and an Internet store at www.hancockfabrics.com.