HKF Hancock Fabrics

Hancock Fabrics, Inc. (NYSE: HKF), announced today that Bruce Smith has resigned as Chief Financial Officer and Executive Vice President, effective March 30, 2007, to accept a position with another company. Jane Aggers, President and CEO, stated, �While we regret Bruce�s decision to leave, we thank him for his contributions over the last ten years and wish him success in his new position.� In the interim, Corporate Revitalization Partners, LLC (CRP), will serve as financial advisors to the Company, with Larry Fair, Vice President-Finance, assuming the role of Chief Accounting Officer. CRP is a national consulting firm, focused on providing interim management solutions with operational, financial and other advisory services. CRP�s professionals have been providing advisory services to Hancock since December 2006 and are, therefore, familiar with the Company�s operations. 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, through retail stores and an Internet store at www.hancockfabrics.com.