Hancock Fabrics Obtains Extensions of Its NYSE Listing and Its Credit Facility's 10-K Filing Deadline

  
    
  
  
    
      Hancock Fabrics, Inc. (NYSE: HKF), today announced that it has received 
      a two-month extension for continued listing and trading on the New York 
      Stock Exchange (NYSE). The extension, which is subject to review by the 
      NYSE on an ongoing basis, provides the Company until January 2, 2007 to 
      file its Annual Report on Form 10-K for the year ended January 28, 2006 
      with the Securities and Exchange Commission (SEC). The Company currently 
      expects to complete and file its Form 10-K with the SEC by January 2, 
      2007. If this filing is not made by that time, the NYSE could either 
      grant an additional trading period up to April 30, 2007 or initiate 
      procedures that could result in suspension and delisting. As part of its 
      continued listing assessment, the NYSE will continue to monitor progress 
      on the Company’s delayed quarterly filings on 
      Form 10-Q.
    
    
      The Company also announced that its bank group has agreed to amend its 
      credit facility to extend the deadline to file its Form 10-K to December 
      31, 2006 and to extend the deadline to file its Form 10-Q’s 
      for fiscal 2006 to February 28, 2007.
    
    
      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 405 retail stores in 40 states and an 
      Internet store at www.hancockfabrics.com.
    
  
Hancock Fabrics, Inc. (NYSE: HKF), today announced that it has
received a two-month extension for continued listing and trading on
the New York Stock Exchange (NYSE). The extension, which is subject to
review by the NYSE on an ongoing basis, provides the Company until
January 2, 2007 to file its Annual Report on Form 10-K for the year
ended January 28, 2006 with the Securities and Exchange Commission
(SEC). The Company currently expects to complete and file its Form
10-K with the SEC by January 2, 2007. If this filing is not made by
that time, the NYSE could either grant an additional trading period up
to April 30, 2007 or initiate procedures that could result in
suspension and delisting. As part of its continued listing assessment,
the NYSE will continue to monitor progress on the Company's delayed
quarterly filings on Form 10-Q.

   The Company also announced that its bank group has agreed to amend
its credit facility to extend the deadline to file its Form 10-K to
December 31, 2006 and to extend the deadline to file its Form 10-Q's
for fiscal 2006 to February 28, 2007.

   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 405 retail stores in 40 states
and an Internet store at www.hancockfabrics.com.