Hampshire Group, Limited : Hampshire Group Reports Fourth Quarter and Fiscal Year 2011 Results

STOCK SYMBOL: HAMP.PK FOR IMMEDIATE RELEASE

(212) 994-4660

Commenting on the year, Heath L. Golden, President and CEO of Hampshire Group, stated, "2011 was a transformative year for Hampshire. Recognizing the need to address the new retail dynamics, we shifted the Company's growth strategy to leverage and build upon our core men's business. We did so by selling our underperforming women's businesses and then by pursuing opportunities that we believe will drive long-term value for shareholders, including the acquisition of Honduras-based Rio Garment and the build out of our contemporary menswear brand scott james®. Our fourth quarter sales and profitability reflect
many factors, including a highly promotional retail environment, the inclusion of Rio Garment and the integration costs of merging that business into Hampshire.
Our strategy for 2012 will continue to focus on the controlled development of our businesses by leveraging our core design capabilities and customer relationships across platforms. Further, we will continue to align our infrastructure and costs with the size of our Company. We are very pleased with our progress in 2011, and now, with three solid and complementary strategies in place, together with a strong balance sheet, we are well positioned for growth. We have seen early signs of success with certain existing and new customers across business lines in 2011 and early 2012. Although we do not expect these developments to significantly impact our overall results in 2012, we believe they are positive indicators of our relevant offerings and capabilities of our sales, design and production teams."

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