HAMPSHIRE ANNOUNCES EXCLUSIVE CANADIAN LICENSING AGREEMENT FOR SCOTT JAMES® WITH ONEAGENCY, PART OF TRIMERA GROUP

~ Unveils Expansion Plans for scott james® Brand Including New Flagship Location and Launch of Boys Collection at Bloomingdale's

New York, NY - August 30, 2012 - Hampshire Group, Limited (OTC Markets: HAMP), a leading provider of sportswear, announced today that the Company has entered into an exclusive licensing agreement with OneAgency, part of The Trimera Group, to distribute men's sportswear under the scott james® brand throughout Canada. The three-year agreement grants OneAgency the wholesale and retail distribution rights to the full collection of the scott james® brand beginning with the Spring 2013 collection. Hampshire also announced the opening of a new scott james® flagship store in Boston and the launch of an exclusive Boys collection at Bloomingdale's.
"As we enter the next phase of growth for the scott james® brand, we are delighted to partner with the OneAgency team, backed by Trimera, to expand into the Canadian market," said Heath L. Golden, President and CEO of Hampshire Group. "Their knowledge, extensive network of clients and well- established track record of distributing great brands in this market will be extremely valuable to us in expanding our contemporary menswear brand, scott james®."
"scott james® is unique in its approach to men's sportswear, with its European flair for combining high - quality fabric and fit with affordable style," commented Rosa Costa, President of OneAgency. "We know this brand fills a void in our marketplace and we are more than excited to collaborate with the Hampshire Group on this new venture."

Flagship Location To Open September 2012

As part of the brand's continuing expansion, scott james® will open a new flagship location at 173 Newbury
Street in Boston. The 1,187 square foot destination is scheduled to open early September 2012. The brand also recently opened shop-in-shops at leading luxury specialty stores, Shaia's in Birmingham, AL and Mr. Sid's in Newton Center, MA.

Bloomingdale's Boys Collection Launch

Extending the brand's reach into the boys category; scott james® launched an exclusive collection at select

Bloomingdale's locations including its flagship location at 59th Street in Manhattan, Short Hills in New Jersey, Aventura in Florida and Sherman Oaks in California. Debuting in September, the new boys collection includes knits, bottoms, sweaters and outerwear and will reflect the brand's unique aesthetic infusing pops of color with contemporary design elements.

Mr. Golden continued, "Combined, these initiatives represent an important next step in the evolution of the scott james® brand. Looking ahead, we see tremendous opportunity to continue to build on the heritage of the brand and extend its reach into additional product categories and geographies."
scott james® apparel and accessories are also available through the brand's website,
www.scottjamesonline.com.

About Hampshire Group

Hampshire Group, Limited, (www.hamp.com) along with its wholly-owned subsidiaries, Hampshire Brands, Inc., Rio Garment S.A. and scott james, LLC, is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points. The Company specializes in designing and marketing men's sportswear to department stores, chain stores and mass market retailers under licensed brands, our own proprietary brands and the private labels of our customers. The Company operates a Honduras-based apparel manufacturer, designing, sourcing and manufacturing knit tops for men, women and children. The Company also offers a full sportswear collection for men through the scott james® brand that is sold primarily at upscale department and specialty stores and online at www.scottjamesonline.com.

About OneAgency

OneAgency, a division of Trimera Group, is a full-service distribution and manufacturing team highly regarded for successfully launching a number of well-known brands, most significantly the 2005 celebrity introduction of Sean John and the 2010 brand hype of Affliction. Most recently, OneAgency has acquired the licensing rights to the prestigious UK Austin Reed casual menswear line.

About The Trimera Group

Based in Montreal, Quebec, Trimera Group is recognized as a leader in wholesale, retail and manufacturing across the U.S., Canada, Europe and Middle East, as well as a portfolio of Company-owned brands with strong global performance. Our businesses also include:

o Retail franchises including Zara, Massimo Dutti, Bershka, Pull & Bear , Gap and Nike.

o Licensed brands for swim include Oakley, BCBGMAXAZRIA, BCBGeneration and apparel for Team

Canada and NHL.

o Trimera Swim, a collective of owned swim brands including Captiva, Christina, Be Creative and Body

Wrap brands.

o Gottex group of owned swim brands including Gottex, Profile and Gideon Oberson.

o Future Fashions, specialist in women's contemporary brands and distributor of the Liz Claiborne brand throughout Canada for men and women's apparel and accessories and hand bags.

o Multiprint Tex Manufacturing Ltd., Canada's licensed children's apparel importer since 1982.

CONTACTS

Investors:
MBS Value Partners
Gentra Cartwright/Betsy Brod
(212) 750-5800
Media:
Berns Communications Group
Jessica Liddell/Danielle Poggi
212-994-4660
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