Sport-Haley, Inc. saw net sales for the fiscal third fiscal quarter ended March 31, 2007, increase 25% to $5.3 million from net sales of $4.2 million last year. The company did not ship any Top-Flite branded apparel during the third quarter.

Net loss for the quarter was $218,000, widening by 15% from a loss of $190,000 last year year.

“Over the last six to seven months we've continued to seek alternative markets for our Top-Flite® branded apparel,” stated Donald W. Jewell, CEO. “As a result, orders obtained to date will begin shipping in September 2007. In addition, we've identified several other potential customers that have expressed significant interest in our forthcoming Top-Flite® line for spring 2008. However, expenses with regard to our marketing efforts, with no corresponding sales of Top-Flite® apparel, comprised a major component of our net loss for the fiscal quarter ended March 31, 2007.”

Basic and diluted earnings per common share were a loss of 9 cents for the quarter, expanding from a loss of 7 cents per share in the year-ago period.

                         SPORT-HALEY, INC.
            Consolidated Unaudited Financial Information
              (In thousands, except per share data)



                             Three Months Ended        Nine Months Ended
                                  March 31,                 March 31,
                             -------------------      --------------------
                               2007        2006        2007          2006
                             -------     -------      -------      -------
Statements of Income Data:

Net sales                    $ 5,273     $ 4,656     $ 14,136     $ 13,096

Gross profit                   1,865       1,737        4,922        4,679

Total other operating costs    2,143       2,162        5,917        5,662

Loss from operations            (278)       (425)        (995)        (983)

Other income (expense), net       71         237          233          367

Net loss                        (218)       (190)        (836)        (619)

Diluted loss per
   common share              ($ 0.09)    ($ 0.07)     ($ 0.31)     ($ 0.23)

Diluted average weighted
  shares outstanding       2,490,000   2,770,000    2,678,000    2,742,000