Hancock Fabrics Reports February Sales and Provides Update on Re-Inventory Process

Hancock Fabrics, Inc. (NYSE:HKF), today reported that
sales in the 28-day period ended February 25, 2006 totaled $29.6
million compared with $31.4 million in the 27-day period ended
February 26, 2005. The current year period has one day more than 2005,
because the Company changed its fiscal period-ends from Sunday to
Saturday in 2005. The effect of having one more day in February 2006
was approximately $.7 million. Same store sales declined 7.3% in
February, comparing the same 28 days of both years.
   Additionally, the Company provided an update to its recent press
release that announced a re-inventory of all stores prior to
finalizing results for its year ending January 28, 2006. The inventory
process began on February 19, 2006 and is scheduled to continue
through April 15, 2006. Accordingly, this will delay the filing of the
Company's Annual Report on Form 10-K beyond its due date of April 13,
2006. Hancock will strive to file its 10-K in late May 2006 and will
provide updates if the schedule changes.

   About Hancock Fabrics:

   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 442 retail stores in 43 states
and an Internet store at www.hancockfabrics.com.