NORWALK, CT — August 4, 2008 - GE Commercial Finance Corporate Lending today announced it provided a $100 million plan of reorganization credit facility to Hancock Fabrics Inc., a fabrics and accessories retailer. The financing will be used to complete the company's reorganization as it emerges from Chapter 11.

Founded in 1957 in Baldwyn, Miss., Hancock Fabrics is a specialty retailer of fashion and home decorating textiles. From stores in 37 states and online, their merchandise includes fabrics, sewing accessories, sewing machines and needlecraft supplies.

"GE's retail and restructuring expertise was critical in securing financing because they truly understood our business and the challenges we were working to overcome," said Jane Aggers, president and CEO of Hancock Fabrics. "We also valued their ability to make a significant financial commitment in an uncertain market environment."

"Combining industry and restructuring expertise accelerates our understanding of customer needs as well as their access to financing," said Tom Quindlen, president and CEO of GE Corporate Lending. "We're committed to delivering smarter capital to borrowers to support both their short and long-term business objectives."

To view a brief video featuring Tom Quindlen discussing smarter capital, visit: http://www.gelending.com/Clg/http_stream/quindlen_video/quindlen.html?catagory=video&id=undefined&bandwidth=11

Industry Specialization
To better meet the unique financing needs of customers, GE Corporate Lending has a team of Industry Leaders supported by research analysts. These industry experts help build smarter financing solutions for companies across key industries: Aerospace & Defense; Automotive; Chemicals & Plastics; Construction; Food, Beverage & Agribusiness; Financial & Business Services; Forest Products; Metals and Mining; Restructuring; Retail; Technology & Electronics; and Transportation.

About GE Corporate Lending
With $17 billion in assets, GE Commercial Finance Corporate Lending is one of North America's largest providers of asset-based, cash flow, structured finance and other financial solutions for mid-size and large companies. From over 30 offices throughout the U.S. and Canada, GE Corporate Lending specializes in serving the unique needs of borrowers seeking $20 million to $2 billion and more for working capital, growth, acquisitions, project finance and turnarounds. Visit www.gelending.com/clnews to learn more.

About GE Commercial Finance
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over $300 billion and is headquartered in Norwalk, Connecticut. GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com. GE is Imagination at Work.

Contacts:
GE Corporate Lending, Norwalk
Jeff Wilson
(203)229-1887
jeffrey.wilson@ge.com

GE Commercial Finance, Norwalk
Ned Reynolds
(203)229-5717
ned.reynolds@ge.com