**Exhibit 99.2**

** **

**NEWSRELEASE**

 

 

FOR IMMEDIATE RELEASE:February 10, 2003

 
| CONTACT: |   | Kevin M. Tomlinson      |   | Patrick W. Hurley       |
|----------|--------|-------------------------|--------|-------------------------|
|     |   | Chief Executive Officer |   | Chief Financial Officer |
|     |   | (303) 320-8800          |   | (303) 320-8800          |

 

# **SPORT-HALEY, INC.ANNOUNCES FURTHER INCREASE**

# **IN STOCK REPURCHASE PROGRAM**

 

Denver, Colorado -February 10, 2003 - Sport-Haley, Inc. (NASDAQ NMS - SPOR) (the “Company”)announced today that the Board of Directors authorized the officers of theCompany to repurchase an additional 300,000 shares of the Company’s issued andoutstanding common stock in accordance with the Company’s previously announcedstock repurchase program, provided such purchase(s) comply in all respects withall applicable Securities and Exchange Commission regulations. As governed by theprogram, repurchases of the Company’s common stock may be made from time totime in the open market at prevailing market prices. The Company has nocommitment or obligation to obtain all or any portion of the shares authorizedfor repurchase.

 

Prior to thisannouncement, the Company had cumulatively repurchased 2,296,900 of the2,520,000 total shares in the program that were previously authorized forrepurchase. Cumulatively, the Company has expended approximately $12,682,000 torepurchase shares of its common stock since the inception of the repurchaseplan in December 1994. Including the additional 300,000 shares, the 523,100shares currently authorized for repurchase represent approximately 20% of theCompany’s 2,660,485 shares of common stock issued and outstanding as of thisdate. The Company plans to utilize its working capital as the source of fundsused to repurchase any shares. All shares repurchased will be canceled andreturned to the status of authorized but unissued common stock.

 

“Sport-Haley’s Board ofDirectors still consider our common stock to be undervalued,” said Kevin M.Tomlinson, Chief Executive Officer. “Our common stock consistently tradesaround $3 per share. At the same time, our book value per share exceeds $8 pershare and cash, marketable securities and receivables together have a bookvalue of about $4.60 per share, in and of themselves. The Board believes thatthe continuation of the repurchase program is in the best interests of theCompany’s shareholders, especially those who may desire to liquidate theirpositions in our stock. The Board currently considers repurchases of theCompany’s common stock to be a better use of available corporate funds than ourother investment alternatives.”

 

Repurchases of shares inthe manner described herein will not cause the Company’s common stock to beheld of record by fewer than 300 persons, nor will it cause the Company’scommon stock to be ineligible for listing on the Nasdaq National Market®.Therefore, the Company will not file a Schedule 13E-3 with the U.S. Securitiesand Exchange Commission under the Security Exchange Act of 1934, as amended, inconnection with its repurchase of all or part of the authorized shares.Further, because the repurchases of shares are not being made in transactionsthat would constitute a tender offer, the Company will not file a Schedule TOin connection with its repurchase of all or part of the authorized shares.

 

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Sport-Haley,Inc. designs, purchases, contracts for the manufacture of, and markets qualitymen’s and women’s fashion golf apparel and outerwear under the HALEY® label andpremium men’s apparel under the Ben Hogan® label. HALEY® fashion golf apparel,known for its innovative design, quality fabrics, generous fit and classicstyle is primarily marketed in the premium and mid-priced markets, through anetwork of independent sales representatives and distributors, to golfprofessional shops, country clubs, and resorts across the United States andinternationally. HALEY® apparel is also marketed to corporate, college,university and other markets. Ben Hogan® apparel is marketed to elite golfprofessional shops, upscale resorts and exclusive department stores within theUnited States.

 

“SafeHarbor” 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 expressionsare intended to identify forward-looking statements within the meaning ofSection 27A of the Securities Act of 1933 and Section 21E of the Securities Actof 1934 regarding events, conditions and financial trends including, withoutlimitation, business conditions and growth in the fashion golf apparel marketand the general economy, competitive factors, and price pressures in thehigh-end golf apparel market; general economic conditions resulting fromthreats or acts of war or terrorism; risks associated with an increasingpercentage of sales relating to licensed apparel, such as Ben Hogan®collections; inventory risks due to shifts in market demand and/or priceerosion of purchased apparel, raw fabric and trim; cost controls; changes inproduct mix; loss or reduced manufacturing capacity of significant suppliers;loss or delay of shipments of finished goods from foreign suppliers; and otherrisks or uncertainties detailed in Securities and Exchange Commission filingsmade by Sport-Haley, Inc. Such statements are based on management’s currentexpectations and are subject to risks, uncertainties and assumptions. Shouldone or more of these risks or uncertainties materialize, or should underlyingassumptions prove incorrect, the actual plan of operations, business strategy,operating results and financial position of Sport-Haley, Inc. could differmaterially from those expressed in, or implied by, such forward-lookingstatements.

 

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