Hancock Fabrics, Inc. (NYSE: HKF), today provided an update as to the expected timing of the filing of its Annual Report on Form 10-K for the year ended January 28, 2006 with the Securities and Exchange Commission. The Company had previously reported that it had received 10-K filing extensions from its bank group through December 31, 2006 and from the New York Stock Exchange (NYSE) through January 2, 2007. The Company now expects that it will take at least another week to file its Form 10-K. Accordingly, Hancock has requested the bank group and the NYSE to extend the filing deadlines for a short period of time.

Hancock Fabrics, Inc. ? America's Fabric Store ? is committed to serving creative enthusiasts with a complete selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. The Company operates 405 retail stores in 40 states and an Internet store at www.hancockfabrics.com.