Sports Haley Posts Loss

Sport-Haley, Inc. reported net loss of $465,000, or 19 cents a share,
for the fourth quarter of its fiscal year ended June 30, compared with
net income of $204,000, or 8 cents per share, a year ago. Sales
decreased by 40%, or $3,109,000, to $4,757,000 from $7,866,000.

Gross profit decreased by 21%, or $467,000, to $1,766,000 from
$2,233,000.
The comparative decreases in net sales and gross profit generally
relate to the consolidation of the operations of Reserve Apparel Group
LLC (“Reserve Apparel”) with the operations of Sport-Haley, Inc.

As previously reported: Reserve Apparel was formed in November 2005 in
order to introduce Top-Flite branded apparel in Wal-Mart stores. In
September 2006, Sport-Haley purchased the minority interest in Reserve
Apparel, and has owned a 100% interest in Reserve Apparel since that
time; and, in late September 2006, Reserve Apparel was notified that
Wal-Mart had chosen to develop its own private label for golf apparel
and discontinue selling Top-Flite branded apparel.

For the quarters ended June 30, 2007 and 2006, respectively, sales of
Top-Flite branded apparel were $0 and $2,027,000. Gross profit with
regard to sales of Top-Flite branded apparel was $0 and $96,000 for the
quarters ended June 30, 2007 and 2006, respectively. In fiscal 2007,
Sport Haley received an order for Top-Flite apparel from one retailer
for a test in 50 of its stores, the first delivery of which we shipped
in September 2007.

Sport-Haley, Inc. designs, purchases, contracts for the manufacture of
and markets women's and men's fashion golf apparel and outerwear under
the SPORT HALEY and Ben Hogan labels.

SPORT-HALEY, INC.
                    Unaudited Financial Information
                            Three Months Ended        Fiscal Year Ended
                                 June 30,                 June 30,
                          ----------------------   ----------------------
                             2007        2006         2007        2006
                          ----------  ----------   ----------- -----------
Statements of Income Data
Net sales                 $4,757,000  $7,866,000   $18,893,000 $20,962,000
Gross profit               1,766,000   2,233,000     6,688,000   6,912,000
Other operating costs      2,357,000   2,355,000     8,274,000   8,017,000
Income (loss) from
 operations                 (591,000)   (122,000)   (1,586,000) (1,105,000)
Net income (loss)           (465,000)    204,000    (1,301,000)   (415,000)
Basic earnings (loss)
 per common share             ($0.19) $     0.08   $     (0.50)$     (0.15)
Basic average weighted
 shares outstanding        2,284,000   2,770,000     2,580,000   2,749,000