The board of directors of Hancock Fabrics, Inc, (NYSE:HKF) at a meeting held September 6, 2000, declared a cash dividend of 2.5 cents per share on the outstanding common shares, payable October 15, 2000 to shareholders of record October 1, 2000. Hancock Fabrics, Inc is a retail and wholesale merchant of fabric and related home sewing and decorating accessories. The company currently operates 448 retail fabric stores in 42 states and supplies over 100 independent wholesale customers.