Sport Haley Q1 Loss Widens a Bit as Sales Increase 14%

Sport-Haley, Inc. reported a loss of $161,000 for the fiscal quarter ended September 30, 2003, or ($0.07) per share, as compared with a loss of $173,000, or ($0.06) per share, in the first quarter of the previous fiscal year.

Net sales increased approximately 14%, or $531,000, to $4,312,000 in the fiscal quarter ended September 30, 2003 from $3,781,000 in the prior year's comparable period.

Gross profit increased approximately 11%, or $162,000, to $1,640,000 from $1,478,000, while selling, general and administrative expenses
increased approximately 9%, or $155,000, from $1,790,000 in the comparable
prior fiscal year period to $1,945,000 in the first fiscal quarter. The net
loss of $161,000 reflected a difference of approximately $12,000, or 7%, from
the prior fiscal year's first quarter loss of $173,000.

Commenting on the results of operations, Kevin M. Tomlinson, Chief
Executive Officer, stated, “Our first quarter is historically the weakest
quarter in our fiscal year. Of our fiscal quarters, historically, our sales
are comparatively least in the first quarter, and we also generally incur
significant selling, general and administrative expenses during the first
quarter for sales catalogs and other items. When comparing this September
fiscal quarter with the same period last year, a significant portion of our
increase in selling, general and administrative expenses relates to greater
sales commissions and royalties paid on our increased sales of Ben Hogan(R)
apparel.”

“While we are disappointed that we were unable to generate operating
income in the first quarter, we are certainly pleased with the continued
positive trend in sales of our Ben Hogan(R) apparel collections,” continued
Mr. Tomlinson. “We are also encouraged that our Company's bookings for the
upcoming spring season are greater than bookings were for the spring season at
this time last year. The increase in our bookings and other economic
inclinations suggest that the outlook for the golf market in general is
beginning to show improvement.”

                                SPORT-HALEY, INC.
                         Unaudited Financial Information

                                                     Three Months Ended
                                                        September 30,
                                                     2003           2002

    Statements of Income Data:

    Net sales                                    $4,312,000     $3,781,000

    Loss from operations                           (305,000)      (312,000)

    Net loss                                       (161,000)      (173,000)

    Basic earnings (loss) per common share           $(0.07)        ($0.06)