Tandycrafts, Inc (NYSE: TAC) today announced it has completed the sale of its Tandy Leather Company operation to Fort Worth, Texas-based The Leather Factory, Inc (Amex: TLF).

Tandycrafts, the Fort Worth, Texas-based consumer products maker and marketer, said The Leather Factory acquired Tandy Leather for an undisclosed amount of cash. Tandy Leather sells leather and leathercrafting products via mail order, the Internet, and through a network of authorised dealers located in 20 countries. Tandy Leather had sales of approximately $7.2m in the fiscal year ended June 30, 2000.

"This transaction is a good strategic fit for Tandy Leather and a good value for Tandycrafts shareholders,'' said Michael J. Walsh, Tandycrafts chairman and chief executive officer. "Importantly, the completion of this sale allows us to better focus on the abundant growth opportunities that exist for Tandycrafts in the home decor market.''

Wray Thompson, chairman, president and chief executive officer of The Leather Factory, added: ``We are pleased to have completed this sale with Tandycrafts. With the acquisition of Tandy Leather, we expect our market share to increase in the retail and wholesale industries, as well as in the e-commerce sector. In addition, the proprietary assets developed by Tandy Leather over the past 81 years, their staff of seasoned employees, and the economies of scale inherent in a transaction of this type are major benefits of the acquisition.''

About The Leather Factory, Inc
The Leather Factory, Inc (www.leatherfactory.com) is a multi-national marketer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, shoe repair supplies, saddle and tack hardware, and do-it-yourself leathercraft kits, and is a manufacturer and distributor of fancy hat trims, leather lacing, and kits. The company distributes its products through 28 sales and distribution units located throughout the United States and Canada.

About Tandycrafts, Inc
Tandycrafts, Inc (www.tandycrafts.com) is a leading maker and marketer of consumer products, including frames and wall decor sold under the Pinnacle Art & Frame brand and home furnishings sold through its Cargo Furniture subsidiary.