X0203 3 2008-08-01 0 0000812906 HANCOCK FABRICS INC HKFIQ.PK 0001366950 EnterAspen LTD 152 WEST 57TH STREET 39TH FLOOR NEW YORK NY 10019 0 0 1 0 Common Stock 1194810 D Common Stock Warrants (right to buy) 1.12 2008-08-01 2013-08-01 Common Stock 1490050 D All of the 1,194,810 shares reported in Table I are held of record by EnterAspen Limited ("EnterAspen"). Of such shares, EnterAspen shares voting control and dispositive authority with respect to 508,460 of such shares with Aspen Advisors LLC, a Delaware limited liability company and investment adviser to EnterAspen ("Aspen Advisors"), and Nikos Hecht, the managing member of Aspen Advisors. In addition, EnterAspen shares voting and dispositive authority with respect to 686,350 of such shares with Sopris Capital Advisors, LLC, a Delaware limited liability company and investment advisor to EnterAspen ("Sopris Advisors"), and Nikos Hecht as the managing member of Sopris Advisors. Except as expressly acknowledged herein, this report shall not be deemed an admission that any such person or entity is the beneficial owner of, any such securities for purposes of Section 16 of the Exchange Act or for any other purpose. All of the warrants to purchase 1,490,050 shares reported in Table II are held of record by EnterAspen. Of such securities, EnterAspen shares voting control and dispositive authority with respect to warrants to purchase 841,219 of such shares with Aspen Advisors, and Nikos Hecht, the managing member of Aspen Advisors. In addition, EnterAspen shares voting and dispositive authority with respect to warrants to purchase 648,831 of such shares with Sopris Advisors, and Nikos Hecht as the managing member of Sopris Advisors. Except as expressly acknowledged herein, this report shall not be deemed an admission that any such person or entity is the beneficial owner of, or has a pecuniary interest, in any such securities for purposes of Section 16 of the Exchange Act or for any other purpose. ENTERASPEN LIMITED By: ASPEN ADVISORS LLC Its Attorney-in-fact with respect to accounts managed by Aspen Advisors LLC By:/s/ Nikos Hecht, Managing Member 2008-08-15 ENTERASPEN LIMITED By: SOPRIS CAPITAL ADVISORS, LLC Its Attorney-in-fact with respect to accounts managed by Sopris Capital Advisors, LLC By:/s/ Nikos Hecht, Managing Member 2008-08-15