Sport-Haley reported net income of $587,000 for the fourth quarter of its fiscal year ended June 30, 2005, or 23 cents per share, as compared with a loss of ($1,659,000), or (55 cents) per share, in the fourth quarter of the previous fiscal year.

For the quarter ended June 30, 2005, net sales increased by 10%, or $656,000, to $7,016,000 from $6,360,000 in the same period in the prior fiscal year. Gross profit increased by 56%, or $899,000, to $2,492,000 from $1,593,000, while other operating costs decreased approximately 12%, or $264,000, from $2,237,000 in the comparable prior year period to $1,973,000. Income (loss) from operations reflected an improvement of $1,163,000, or 181%, from a loss from operations in the prior fiscal year's fourth quarter of ($644,000) to income from operations in the fourth quarter of fiscal 2005 of $519,000.

Commenting on the results of operations, Donald W. Jewell, Interim Chief Executive Officer, stated, “We're very pleased with the results of our fourth quarter. Our income from operations for the quarter is certainly reflective of the dedication our management team has to return this company to profitability. We've believed for a long time that our Sport Haley(TM) and Ben Hogan® collections represent some of the best golf apparel available, but it's been a long time since we last generated income from operations. We've worked diligently in the last several months, making difficult decisions along the way, to ensure the long-term financial health of the Company.”

“We intend to continue in our efforts to further improve our operations,” continued Mr. Jewell. “We have significantly improved our inventory position to now bring it more in line with our expectations, and we also made significant reductions within our operating costs. Our plans include continuing to focus our efforts to find additional ways to decrease our operating costs and to complete our search for sensible strategic alternatives that could improve our core business. However, we believe that the success we achieved during our fourth quarter certainly indicates that we are on track with the changes we have implemented to date.”

Three Months Ended
                                                         June 30,
                                                   2005            2004
                                               ----------      ----------
Statements of Income Data:

Net sales                                     $ 7,016,000     $ 6,360,000

Gross profit                                    2,492,000       1,593,000

Other operating costs                           1,973,000       2,237,000

Income (loss) from operations                     519,000        (644,000)

Net income (loss)                                 587,000      (1,659,000)

Basic earnings (loss) per common share        $      0.23     $     (0.55)

Basic average weighted shares outstanding       2,564,000       2,471,000