Sport-Haley, Inc., the maker of golf and lifestyle apparel, completed the acquisition of all of the assets of Fantasi International, Inc., a Florida corporation doing business as Bette & Court Golf.

Among the assets conveyed to Sport Haley in the transaction, via an assignment for the benefit of creditors in a Florida state court proceeding, were the Bette & Court and Swing trademarks and other related marks and/or trade names. Bette & Court and Swing are established women's golf and active lifestyle apparel brands. The Company expects to continue marketing the Bette & Court and Swing brands independently from its SPORT HALEY women's fashion golf apparel brand. The Bill of Sale, which was signed on June 17, 2010, was effective June 4, 2010. Pursuant to a purchase agreement entered into between the parties, Sport Haley paid $410,000 for the assets of Fantasi and did not assume any of Fantasi's liabilities. The asset purchase transaction was unanimously approved by the Company's Board of Directors.

Samuel A. Kidston, the Company's Chairman of the Board, said, “The combination of our SPORT HALEY(R) and Ben Hogan(R) brands with the Bette & Court(R) and Swing(R) brands strategically positions the Company for significant future growth. Importantly, we believe this acquisition will prove to be a catalyst for greater visibility and profitability for investors, and it fits within the steps we are undertaking to restructure the Company.”

Catherine B. Blair, the Company's President & Creative Director, commented, “Bette & Court(R) and Swing(R) are brands with a loyal following in women's golf apparel. We are very excited for the opportunity to be able to combine the strengths we have developed within golf apparel markets over the last several years with such well-recognized women's apparel brands. We believe that the synergies of jointly managing diverse women's brands while separately marketing them will grow sales and help return the Company to sustained profitability.”

The Company also announced today that the following five directors were re-elected at the annual meeting of shareholders to serve for the following year: Samuel A. Kidston, James R. TenBrook, Erik W. Thoresen, Lloyd M. Sems, and Mark J. Stevenson. The annual meeting of shareholders commenced on June 15, 2010, and was adjourned until and completed on June 18, 2010. In addition, the shareholders ratified the Company's appointment of Eide Bailly LLP to serve as its independent auditors for the 2010 fiscal year. Results of the shareholder voting were as follows:

Election of directors to hold office for one-year terms or until their
successors are elected and qualified:
                               For     Withheld
                            ———  ——–
      Samuel A. Kidston     1,140,091    5,431
      James R. TenBrook     1,094,140   51,382
      Erik W. Thoresen      1,140,091    5,431
      Lloyd M. Sems         1,140,091    5,431
      Mark J. Stevenson     1,093,091   51,431
Ratification of the appointment of Eide Bailly LLP as independent auditors
for fiscal year 2010:
               For      Against   Abstain
            ———   ——-   ——-
            1,141,440    4,082       0

Organized in 1991, Sport-Haley markets women's and men's fashion apparel and outerwear under the SPORT HALEY and Ben Hogan labels.  Ben Hogan apparel is distributed pursuant to a licensing agreement with Callaway Golf Company.