Sport-Haley Announces Acquisition of All the Assets of Fantasi International Inc. dba Bette & Court Golf

DENVER, CO--(Marketwire - June 25, 2010) - Sport-Haley, Inc. (PINKSHEETS: [ SPOR ]) ("Sport Haley" or the "Company"), a leading developer, manufacturer and distributor of distinctive golf and lifestyle apparel, today announced the successful completion of the acquisition of all of the assets of Fantasi International, Inc. ("Fantasi"), a Florida corporation, doing business as Bette & Court Golf. Among the assets conveyed to Sport Haley in the transaction, via an assignment for the benefit of creditors in a Florida state court proceeding, were the Bette & Court® and Swing® trademarks and other related marks and/or trade names. Bette & Court® and Swing® are established women's golf and active lifestyle apparel brands. The Company expects to continue marketing the Bette & Court® and Swing® brands independently from its SPORT HALEY® women's fashion golf apparel brand. The Bill of Sale, which was signed on June 17, 2010, was effective June 4, 2010. Pursuant to a purchase agreement entered into between the parties, Sport Haley paid $410,000 for the assets of Fantasi and did not assume any of Fantasi's liabilities. The asset purchase transaction was unanimously approved by the Company's Board of Directors.

Samuel A. Kidston, the Company's Chairman of the Board, said, "The combination of our SPORT HALEY® and Ben Hogan® brands with the Bette & Court® and Swing® brands strategically positions the Company for significant future growth. Importantly, we believe this acquisition will prove to be a catalyst for greater visibility and profitability for investors, and it fits within the steps we are undertaking to restructure the Company."

Catherine B. Blair, the Company's President & Creative Director, commented, "Bette & Court® and Swing® are brands with a loyal following in women's golf apparel. We are very excited for the opportunity to be able to combine the strengths we have developed within golf apparel markets over the last several years with such well-recognized women's apparel brands. We believe that the synergies of jointly managing diverse women's brands while separately marketing them will grow sales and help return the Company to sustained profitability."

The Company also announced today that the following five directors were re-elected at the annual meeting of shareholders to serve for the following year: Samuel A. Kidston, James R. TenBrook, Erik W. Thoresen, Lloyd M. Sems, and Mark J. Stevenson. The annual meeting of shareholders commenced on June 15, 2010, and was adjourned until and completed on June 18, 2010. In addition, the shareholders ratified the Company's appointment of Eide Bailly LLP to serve as its independent auditors for the 2010 fiscal year. Results of the shareholder voting were as follows:

Election of directors to hold office for one-year terms or until their successors are elected and qualified:

	For	Withheld
Samuel A. Kidston	1,140,091	5,431
James R. TenBrook	1,094,140	51,382
Erik W. Thoresen	1,140,091	5,431
Lloyd M. Sems	1,140,091	5,431
Mark J. Stevenson	1,093,091	51,431

Ratification of the appointment of Eide Bailly LLP as independent auditors for fiscal year 2010:

				For		Against		Abstain
				1,141,440		4,082

Organized in 1991, Sport-Haley, Inc. is a leading golf apparel company which designs, purchases, contracts for the manufacture of, and markets women's and men's fashion apparel and outerwear under the SPORT HALEY® and Ben Hogan® labels. The SPORT HALEY® and Ben Hogan® fashion golf apparel collections, known for their innovative designs, quality fabrics, generous fits and classic styles, are primarily marketed in the premium and mid-priced markets through a network of independent sales representatives to golf professional shops, country clubs and resorts within the United States. Ben Hogan® fashion apparel is distributed pursuant to a licensing agreement with Callaway Golf Company.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: When used in this release, the words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," "believe," and similar expressions, variations or the negative of these words, and any statement regarding possible or assumed future results of operations of our business, the markets for our products, anticipated expenditures, regulatory developments or competition, or other statements regarding matters that are not historical facts, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. The reader should be aware that our actual results could differ materially from those contained in forward-looking statements. Our financial condition and the results of our operations will depend on a number of factors, including, but not limited to, the following: our ability to successfully anticipate fashion trends, design favorably accepted fashion golf apparel, effectively advertise and communicate within the marketplace, and penetrate our chosen distribution channels; competition within golf apparel markets; business conditions and growth in the fashion golf apparel market and the general economy; our ability to successfully forecast sales and optimize inventory levels; our ability to successfully manage risks associated with dependency on sales of licensed apparel, such as the Ben Hogan® apparel collections; loss of certain third party suppliers, and/or delays in receiving garments from third party suppliers caused by various factors, including lost or reduced manufacturing capacity or significant suppliers, labor shortages, timely performance of third parties, transportation difficulties, and others; significant delays in deliveries from third party suppliers; unsatisfactory recourse with regard to nonconforming goods received from foreign suppliers; political and international trade relations; changes in international trade quota systems for apparel; significant reliance upon a few individual foreign suppliers; reliance upon a certain foreign person responsible for maintaining relationships with and monitoring the performance of certain of our significant foreign suppliers; consumer spending on golf apparel; general global economic and political conditions resulting from threats or acts of war or terrorism and responses thereto; access to capital; maintaining satisfactory relationships with commercial banking institutions; establishing controls with regard to and maintaining the integrity of technology and information systems; and, reliance upon executive officers and key employees. There may be other factors not mentioned above or included in our filings on the OTC News and Disclosure Service that may cause actual results to differ materially from any forward-looking statement. The reader should not place undue reliance on any forward-looking statement. Neither the Company nor any of its corporate officers or key employees assumes any obligation to update any forward-looking statement as a result of new information, future event or development, except as required by securities laws.

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Sport-Haley Announces Acquisition of All the Assets of Fantasi International Inc. dba Bette & Court Golf