Tandy Leather Factory to Open Three Retail Stores in March 2006.

FORT WORTH, Texas -- Tandy Leather Factory, Inc. (AMEX:TLF) announced today that it plans to open Tandy Leather retail stores in Little Rock, Ark., Denver, Colo. (Littleton), and Irving, Texas. These new stores are the fourth, fifth and sixth of twelve planned store openings in 2006 and bring the

number of Tandy Leather retail stores to 56. The Little Rock store will be located at #1 Stagecoach Village Drive. The Denver store will be located at 5151 S. Federal Blvd. in Littleton and the Irving store will be located at 2000 Esters Road. The Little Rock store will open this week, and the Denver and Irving stores will be open by the middle of March.

Chairman and Chief Executive Officer, Wray Thompson, commented, "These three stores get us to the halfway point in our 2006 growth plan. Brian Walker, trained in our Dallas store, will be managing the South Denver store. Vickie Baker will be the manager in Little Rock. She has been training in our Kansas City store for almost 2 years. Rusty Burris will be managing the Irving store. He has worked through our manager training program very quickly as a result of his 20+ years of retail sales experience."

Tandy Leather Factory, Inc., 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 distribution 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. (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 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. In addition, investors should be aware that there are business risks associated with opening a new chain of retail stores. These risks include the possibility that stores will not be economically successful or that economic conditions will impede their profitability.