Tandy Leather Factory, Inc. Reports January 2010 Sales Up 3% over Last Year

Tandy Leather Factory, Inc. (AMEX: TLF) reported today that sales for the month of January were $4.5 million, up 3% compared to January 2009 sales.

Retail Leathercraft’s sales rose 8% to $2.3 million compared to January 2009 sales of $2.1 million. The 74 comparable stores’ sales were up 7% for the month compared to the same period last year. The 1 store opened since January 2009 added January sales of $16,000.

Wholesale Leathercraft posted sales of $2.1 million for January, up 1% over January 2009 sales of $2.1 million. Within the Wholesale Leathercraft division, the wholesale stores’ sales were up 5% for the month while the National Account group posted a January sales decline of 19%.

International Leathercraft, which consists of one store in the UK, reported January sales of $112,000, an 8% increase over sales of $104,000 in January 2009. The UK store opened in February 2008 as a combination retail and wholesale store.

Chief Executive Officer and President, Jon Thompson, commented, “The positive sales trends continue in our wholesale and retail stores as we begin 2010. I am especially pleased with the wholesale stores as they have now had three consecutive months of sales gains. The January sales gains are back to the level of 2006 before the economy started slowing down. Our UK store will be two years old in February and continues to generate consistent sales gains, which confirms my belief of the potential that exists beyond our borders if we can find the right people to manage stores.”

Shannon L. Greene, Chief Financial Officer added, “We are cautiously optimistic as we look forward into 2010 and are expecting 2010 sales to be higher than 2009 sales. Whether the economy will cooperate is difficult to predict with any certainty. Regardless, we are moving ahead with our expansion plans by analyzing the potential of new markets as well as adding to the customer base in our existing stores.”

Tandy Leather Factory, Inc., ( http://www.tandyleatherfactory.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 through its 29 Leather Factory stores, located in 19 states and 3 Canadian provinces, 75 Tandy Leather retail stores, located in 36 states and 5 Canadian provinces, one combination wholesale/retail store located in the United Kingdom, and Mid-Continent Leather Sales, one store located in Oklahoma. Its common stock trades on the NYSE Amex with the symbol "TLF." To be included on Tandy Leather Factory’s email distribution list, go to http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.

This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results that are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and resultant price fluctuations; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.