Hancock Fabrics Reports September Sales

Hancock Fabrics, Inc. (NYSE:HKF), today reported that
sales in the five-week period ended October 1, 2005 totaled $37.6
million compared with $40.0 million for the same period of the prior
year. Sales in comparable stores decreased 6.3% in September.
   In the first two months of the third quarter, total sales were
$66.9 million versus $70.7 million in the same period of fiscal 2004,
and comparable store sales declined 6.3%. Year-to-date, total sales
were $248.0 million in 2005 and $265.6 million in 2004. Comparable
store sales for the eight months to date decreased 7.2%.
   Jane Aggers, Chief Executive Officer, commented, "After
September's disappointing first week in which Hurricane Katrina hit
and gas prices spiked, we did see some improvement in our trend.
Year-to-date, through August, comparable store sales had been down
7.3%, and they were down almost 20% during the first week of
September. However, over the last four weeks of September, our
business improved somewhat, as comparable store sales were down 3.2%.
During that four-week period, the impact of the month's second
hurricane was largely offset by hurricane activity during the same
period of last year."
   "We are cautiously optimistic that the initiatives implemented in
mid-September have started to take hold. While, we acknowledge that
there is still market risk, we remain committed to taking the steps
that we can control to improve the fall and holiday season," Aggers
concluded.
   Hancock Fabrics, Inc. is a specialty retailer of fabric and
related home sewing and decorating accessories. The Company operates
448 retail fabric stores in 43 states and operates an internet store
under the domain name, www.hancockfabrics.com.