Hancock Fabrics Reports May Sales

Hancock Fabrics, Inc. (NYSE: HKF), today reported that
sales in the four-week period ended May 27, 2006 totaled $27.3 million
compared with $25.9 million in the same period of the prior year.
Sales in comparable stores increased 5.9% in May.
   In the first four months of fiscal 2006, total sales were $120.9
million versus $123.7 million in the same period of fiscal 2005, and
comparable store sales declined 2.3%, including a 4.5% 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 443 retail stores in 43 states
and an Internet store at www.hancockfabrics.com.