Tandy Leather Factory Supports Hospitalized Veterans.

FORT WORTH, Texas -- Tandy Leather Factory, Inc. (AMEX: TLF) announced today that it has donated more than 100,000 leathercraft kits to Help Hospitalized Veterans, a nonprofit organization headquartered in Winchester, California. Founded in 1971, Help Hospitalized Veterans (HHV) was established for the purpose of distributing therapeutic arts and craft kits free of charge to veterans and active duty military personnel receiving medical treatment at VA and military hospitals and state veterans nursing homes. HHV currently distributes kits to 282 facilities, including military installations overseas, military ships, state veterans homes, VA medical centers and outpatient clinics.

Ron Morgan, Chief Executive Officer and President, commented, "HHV is a quality organization committed to the enhancement of our veterans' quality of life. Tandy Leather was built on Charles Tandy's belief that a leathercraft company could be successful due to the large quantities of leathercraft supplies being used in military hospitals and recreation centers during World War II. Leathercraft gave the injured and recovering soldiers something useful to do and their handiwork, in addition to being therapeutic, had genuine value. Today, based on reports from hospital personnel, occupational therapists, and patients themselves, craft kits contribute to the overall recovery of many patients by developing finger dexterity or hand control and improving hand-eye coordination, as well as counteracting boredom, the number one problem in every hospital. In addition, the patients develop a legitimate skill set which encourages a sense of pride and usefulness. Tandy Leather Factory is pleased to contribute in some small way to HHV's effort."

Tandy Leather Factory, Inc. (http://www.tandyleather.com), headquartered in Fort Worth, Texas, is a specialty retailer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products as The Leather Factory through its wholesale centers and as Tandy Leather Company through its retail stores. Its common stock trades on the American Stock Exchange with the symbol "TLF".

This news release may contain forward-looking statements. All forward-looking statements made here or in other news releases issued by Tandy Leather Factory, Inc. 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 Tandy Leather Factory, Inc. 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. Investors are reminded that past performance may not be predictive of future results.