HKF Hancock Fabrics

Hancock Fabrics, Inc. (NYSE:HKF) announced that it has realigned its Store Operations' team to strengthen field management and store support. Dean Abraham has been appointed Senior Vice President - Store Operations, reporting to Jane Aggers, Chief Executive Officer. Mr. Abraham has been with the Company for 36 years, most recently as SVP - Merchandising and, prior to that, SVP - Store Operations. Reporting to Mr. Abraham will be the three regional vice presidents of store operations and a newly-created position, VP - Business Development, focused on identifying best practices that lead to both better customer service and the reduction of expenses through the elimination of low-value tasks. "Our primary goals for 2006 are to fully implement our sales growth initiatives, increase productivity and reduce expenses across the organization. Strengthening our stores organization is an essential part of achieving these goals and supporting our business strategy," Aggers said. A national search for a SVP - Merchandising has been started. In the interim, the vice presidents responsible for the fashion, notions, home and quilting merchandise areas of the Company will report directly to Ms. Aggers. 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.