Hancock Fabrics Announces Resignation of Bruce Smith

  
    
  
  
    
      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.