Hampshire Group Announces Fourth Quarter and Year End Results

Business Wire, March 7, 2003

Business Editors

ANDERSON, S.C.--(BUSINESS WIRE)--March 7, 2003

Hampshire Group, Limited (Nasdaq: HAMP) announced today that net income for the full year 2002 increased 54% to $17,048,000 or $3.53 per fully diluted share from $11,080,000 or $2.37 per fully diluted share for the full year 2001.

Net sales were $293,268,000 in 2002, a 12% increase from $261,361,000 reported in the prior year.

In the fourth quarter of 2002, net sales were $109,739,000 compared with $97,787,000 in the prior year, and net income was $7,442,000 or $1.54 per fully diluted share compared with $7,852,000 or $1.67 per fully diluted share a year earlier. The Company said that results in 2002 reflected an overall increase in demand for sweaters and improved product and styling.

Commenting on the results, Ludwig Kuttner, Chairman and Chief Executive Officer of Hampshire Group said, "We have been steadily building a diversified apparel company with a committed team of employees. In 2002, our products continued to be well received by the consumer as we supplied them with fashion, value, and quality while increasing profits for the retailer."

Hampshire Group, Limited is an apparel company whose principal products are men's and women's sweaters and related separates. The Company's investment subsidiary invests principally in commercial real estate, both domestically and internationally.

"Cautionary Disclosure Regarding Forward-Looking Statements"

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to future events. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those set forth or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events. Readers are also urged to carefully review and consider the various disclosures made by the Company in its Form 10-K and other Securities and Exchange Commission filings which attempt to advise interested parties of the factors which affect the Company's business.

HAMPSHIRE GROUP, LIMITED
COMPARATIVE SUMMARY OF EARNINGS
(In thousands, except per share data)

                                               Dec. 31,
YEAR ENDED                                  2002      2001
----------------------------------------------------------
Net sales                            $   293,268  $261,361
                                       =========  ========
Net income                           $    17,048  $ 11,080
                                       =========  ========
Net income per share:
     Basic                           $      3.62  $   2.38
                                       =========  ========
     Diluted                         $      3.53  $   2.37
                                       =========  ========
Weighted average number
  of shares outstanding:
     Basic                                 4,711     4,661
                                       =========  ========
     Diluted                               4,834     4,674
                                       =========  ========


                                               Dec. 31,
QUARTER ENDED                               2002      2001
----------------------------------------------------------
Net sales                            $   109,739  $ 97,787
                                       =========  ========
Net income                           $     7,442  $  7,852
                                       =========  ========
Net income per
 Basic                               $      1.58  $   1.68
                                       =========  ========
 Diluted                             $      1.54  $   1.67
                                       =========  ========
Weighted average number
 of shares outstanding:
     Basic                                 4,718    4,669
                                       =========  =======
     Diluted                               4,835    4,689
                                       =========  =======