Hancock Fabrics Reports June Sales

Hancock Fabrics, Inc. (NYSE: HKF), today reported that
sales in the five-week period ended July 1, 2006 totaled $33.0 million
compared with $31.4 million in the same period of the prior year.
Sales in comparable stores increased 6.2% in June.
   In the first two months of the second quarter, total sales were
$60.3 million versus $57.3 million in the same period of fiscal 2005,
and comparable store sales were up 6.1%. Year-to-date, total sales
were $153.9 million in 2006 and $155.1 million in 2005. Comparable
store sales, for the five months to date, declined 0.6%, including a
5.5% 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 429 retail stores in 41 states
and an Internet store at www.hancockfabrics.com.