Sport-Haley reported unaudited earnings for the fiscal quarter and six months ended December 31, 2003. Net sales for the fiscal quarter were $4.8 million, an increase of $722,000 or 18%, from net sales of $4.0 million for the same quarter in the prior fiscal year. Net sales for the
six months period, were approximately $9.1 million, an increase of $1.3 million or 16%, from net sales of approximately $7.8 million the previous fiscal year.

Management primarily attributes the increase in net sales to the continued
growth of its Ben Hogan® apparel collections within upscale golf apparel markets. Net sales of Ben Hogan® apparel for the fiscal quarter and six months ended December 31, 2003, totaled approximately $1,410,000, or 30% of total net sales for the fiscal quarter, and $2,736,000, or 30% of total net
sales for the six-month period, respectively. Comparatively, net sales of
Ben Hogan® apparel for the fiscal quarter and six months ended December
31, 2002, totaled approximately $829,000, or 21% of total net sales for the
fiscal quarter, and $1,466,000, or 19% of total net sales for the six-month
period, respectively.

The Company's gross profit, as a percentage of sales, was approximately 39%
for the quarter and six months ended December 31, 2003, respectively, and
39% for the same periods in the prior fiscal year.

“The Company's net revenues and gross margins were generally as expected,”
stated Kevin M. Tomlinson, Chief Executive Officer. “The increase in net
revenues is, once again, directly attributable to the continued sales
growth of our Ben Hogan apparel collections. Net revenues associated with our more mature HALEY branded apparel collections remain flat at best and are indicative of the lingering adverse market conditions
prevalent throughout the golf apparel industry. Nevertheless, our advance
bookings indicate that the overall trend of increasing revenues will
continue throughout the current fiscal year.”

“We are pleased to have maintained a 39% gross margin throughout the
six-month period,” continued Mr. Tomlinson. “We were able to maintain the
39% gross margin even though we recorded a charge of approximately $133,000
to revalue our previous seasons inventories during the December quarter.
While we still have a significant amount of excess prior seasons
inventories on hand, market conditions relating to such merchandise appear
to be improving, and we expect to sell a large portion of the excess
inventories before the end of this fiscal year.”

Selling, general and administrative expenses for the fiscal quarter ended
December 31, 2003, increased by approximately $283,000, or 17%, to
$1,901,000 from $1,618,000 for the same three-month period in the prior
fiscal year. Selling, general and administrative expenses for the six
months ended December 31, 2003, increased by approximately $438,000, or
13%, to $3,846,000 from $3,408,000 for the same six-month period in the
prior fiscal year. Selling, general and administrative expenses were
approximately 40% and 42% of net sales for the fiscal quarter and six
months ended December 31, 2003, as compared with 40% and 44% for the same
periods in the prior fiscal year.

“The vast majority of increases in selling, general and administrative
expenses are directly related to increases in sales commissions and
royalties associated with the corresponding increase in Ben Hogan apparel sales. While selling, general and administrative expenses increased
by 17% and 13% for the quarter and six-month period, when compared with the
same periods last year, the corresponding Ben Hogan® sales increased by
70% and 87%, respectively,” stated Mr. Tomlinson.

Net income for the fiscal quarter ended December 31, 2003, was
approximately $11,000, an increase of $1,000, or 10%, when compared with
net income of $10,000 for the same quarter in the prior fiscal year. Net
loss for the six months ended December 31, 2003, was approximately
($150,000), and improvement of $13,000, or 8%, when compared with the net
loss of ($163,000) for the same six-month period in the prior fiscal year.

“We implemented a new operations software system in January and anticipate
utilizing the system to better control inventory levels and to improve many
other business operations. We also recently overhauled the management
structure of our sales organizations, including the promotions of Mark
Maley, Mitch Wise and Barry Hyman,” stated Mr. Tomlinson. “We enjoyed
strong acceptance of all of our product lines at the recent PGA tradeshow
in Orlando, Florida, and we plan to continue implementing sales growth
initiatives, including the anticipated launch of Top-Flite branded
apparel in mid-summer. Accordingly, we look forward to a promising Fall
2004 booking season.”


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

                              Three Months Ended     Six Months Ended
                                  December 31,          December 31,
                                2003       2002       2003       2002
                              --------   --------   --------   --------
Statements of Income Data:

Net sales                     $  4,763   $  4,041   $  9,075   $  7,822

Gross profit                     1,858      1,558      3,498      3,036

Loss from operations               (43)       (60)      (348)      (372)

Other income, net                   71         62        125        105

Net income (loss)                   11         10       (150)      (163)

Diluted earnings (loss)
 per common share             $   0.01   $   0.00    ($ 0.06)   ($ 0.06)

Diluted average weighted
 shares outstanding              2,706      2,710      2,445      2,699


                                                    December 31,
                                                2003           2002
Balance Sheet Data:                          ---------      ---------

Working capital                              $  18,894      $  20,282

Current assets                                  20,530         22,025

Total assets                                    21,993         23,107

Current liabilities                              1,636          1,743

Long-term liabilities                                -              -

Shareholders' equity                            20,357         21,364