Hancock Fabrics Reports December 2005 Sales

Hancock Fabrics Inc. (NYSE: HKF), today reported that
sales in the five-week period ended December 31, 2005 totaled $48.3
million compared with $49.9 million in the same period of the prior
year. Sales in comparable stores decreased 4.9% in December.
   In the first two months of the fourth quarter, total sales were
$86.4 million versus $91.1 million a year ago, and comparable store
sales were down 6.8%. Year-to-date, total sales were $371.4 million in
2005 and $395.9 million in 2004. Comparable store sales in the eleven
months to date decreased 7.0%.
   Hancock Fabrics, Inc. is a specialty retailer of fabric and
related home sewing and decorating accessories. The Company operates
446 retail fabric stores in 43 states and operates an internet store
under the domain name, www.hancockfabrics.com.