HKF Hancock Fabrics

Hancock Fabrics, Inc. (NYSE: HKF), today reported that sales in the four-week period ended November 25, 2006 totaled $34.8 million, compared to $38.1 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 2.8% in November. In the first ten months of fiscal 2006, total sales were $311.4 million versus $323.1 million in 2005. Comparable store sales in the ten months to date declined 1.0%, including a 3.3% 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. 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 November 25, 2006 totaled $34.8 million, compared to $38.1 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 2.8% in November. In the first ten months of fiscal 2006, total sales were $311.4 million versus $323.1 million in 2005. Comparable store sales in the ten months to date declined 1.0%, including a 3.3% 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. 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.