DENVER, CO. – Nov. 20, 2004 – Sport-Haley, Inc. (NASDAQ: SPOR) (the "Company") has announced its results of operations for the first fiscal quarter of its 2005 year. The Company reported a loss of $1,276,000 for its first fiscal quarter ended September 30, 2004, or ($0.52) per share, as compared with a loss of $161,000, or ($0.07) per share, in the first quarter of the previous fiscal year.

Net sales increased approximately 29%, or $1,258,000, to $5,570,000 in the fiscal quarter ended September 30, 2004 from $4,312,000 in the same period in the prior fiscal year. Gross profit increased approximately 8%, or $130,000, to $1,770,000 from $1,640,000, while selling, general and administrative expenses increased approximately 57%, or $1,112,000, from $1,945,000 in the comparable prior fiscal year period to $3,057,000 in the first fiscal quarter. The net loss of $1,276,000 reflected a difference of approximately $1,115,000, or 693%, from the prior fiscal year's first quarter loss of $161,000.

Commenting on the results of operations, Donald W. Jewell, Interim Chief Executive Officer, stated, "We're really pleased with the comparative increase in sales this quarter. Unfortunately, for a number of reasons, we were not able to push the increase in sales through to the bottom line. The results for the comparative quarters would have been similar except for two separate items. As we disclosed last quarter, subsequent to the death of our former chairman, Robert G. Tomlinson, pursuant to a settlement agreement, we paid his estate the lump sum amount of $650,000, which we recorded this quarter as a selling, general and administrative expense.

The Company also set a goal in October this year to attempt to arrange for the disposal of a majority of our obsolete inventories by December 31, 2004. This goal caused us to accelerate our disposition plans and to revise our analysis regarding the valuation of obsolete inventories, and we recorded a write-down of finished goods inventories of $543,000 that is included in our cost of goods sold for this quarter."

"We anticipate that our losses will continue at least into the next quarter," continued Mr. Jewell. "In October, our Board of Directors relieved Kevin M. Tomlinson of his duties as our Chief Executive Officer and President. Under the terms of his employment agreement, Mr. Tomlinson is entitled to receive severance and other compensation, which we expect to record as selling, general and administrative expense in our second quarter. We estimate the severance and other compensation will be approximately $480,000 to $550,000."

Mr. Jewell continued, "My immediate goal is to return this company to profitability. Therefore, in the next couple of months, we plan to thoroughly analyze our operations, including our selling, general and administrative expenses, to determine how we can operate more efficiently."

Sport-Haley, Inc. designs, purchases, contracts for the manufacture of, and markets quality men's and women's fashion golf apparel and outerwear under the HALEY label and premium men's apparel under the Ben Hogan label. HALEY fashion golf apparel, known for its innovative design, quality fabrics, generous fit and classic style is marketed in the premium and mid-priced markets through a network of independent sales representatives and distributors to golf professional shops, country clubs and resorts across the United States and internationally. HALEY apparel is also marketed to corporate, college and other markets. Ben Hogan apparel is marketed to elite golf professional shops, upscale resorts and exclusive department stores within the United States.

Contacts:
Donald W. Jewell
Interim Chief Executive Officer
(303) 320-8800

Patrick W. Hurley
Chief Financial Officer
(303) 320-8800

Source: Sport-Haley, Inc.