HKF Hancock Fabrics

Hancock Fabrics, Inc. (NYSE: HKF), today reported that sales in the four-week period ended May 27, 2006 totaled $27.3 million compared with $25.9 million in the same period of the prior year. Sales in comparable stores increased 5.9% in May. In the first four months of fiscal 2006, total sales were $120.9 million versus $123.7 million in the same period of fiscal 2005, and comparable store sales declined 2.3%, including a 4.5% benefit from stores that are being liquidated in connection with store closing sale events. 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 443 retail stores in 43 states and an Internet store at www.hancockfabrics.com.