Tandy Leather Factory Announces Acquisition of Wholesale Leather Company.

FORT WORTH, Texas -- Tandy Leather Factory, Inc. (AMEX:TLF) today announced that it has completed the cash purchase of Mid-Continent Leather Sales Company, Inc., located in Tulsa (Coweta), Oklahoma. The purchase price was not disclosed at this time. The company indicated that it plans to continue to operate the acquired company under its present name. It will be managed as part of Tandy Leather Factory's Wholesale Leathercraft division.

Mid-Continent Leather Sales Company, a private family-owned business, was founded in 1955. The company has expanded its product line of leathercraft supplies over the years but is known primarily for its large selection of leathers. The company has a solid customer base of both wholesale and retail customers.

Ron Morgan, the company's CEO and President, commented, "We are pleased to complete this acquisition. Mid-Continent has a good reputation in the industry and will be a great addition to our Wholesale Leathercraft division. It operates very similar to our Leather Factory stores although it carries a wider variety of leathers than we generally offer. We have high expectations about its performance."

The Leather Factory, Inc., (http://www.leatherfactory.com), headquartered in Fort Worth, Texas, is an international 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 kits, and is a manufacturer and distributor of fancy hat trims, leather lacing and kits. The Company distributes its products through wholesale distribution centers located throughout the U.S. and Canada and through its subsidiary, Tandy Leather Company, via retail stores and mail/telephone/website orders (http://www.tandyleather.com). Its common stock trades on the American Stock Exchange with the symbol "TLF".

This news release contains forward-looking statements, such as the statements regarding future growth. All forward-looking statements made here or in other news releases issued by The Leather Factory, Inc. (TLF) are based on current expectations as of the date of the release. These forward-looking statements involve risks and uncertainties that could cause the results of TLF to differ materially from management's current expectations. Many of these risks and uncertainties are detailed from time to time in TLF's reports filed with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and the most recent quarterly report on Form 10-Q.