Hampshire Group Provides Update on Financing

NEW YORK–(BUSINESS WIRE)–Hampshire Group, Limited (OTC Markets:HAMP) (“Hampshire” or “the
Company”), updating its May 23, 2016 SEC filing on Form 8-K regarding
its credit agreement, today announced that the Company to date has not
secured a new credit facility to replace its previous agreement with its
lender. Additionally, the Company’s lender has declined to extend the
forbearance and maturity date beyond June 3, 2016; accordingly,
Hampshire currently is in default of the credit agreement.

Hampshire continues to explore various alternatives, including an
orderly wind down of its operations. Management plans to provide further
updates on Hampshire’s situation as new information becomes available.

About Hampshire Group

Hampshire Group, Limited (www.hamp.com),
along with its wholly-owned subsidiary, Hampshire Brands, Inc. is a
provider of fashion apparel across a broad range of product categories,
channels of distribution and price points. The Company specializes in
designing and marketing men’s sportswear to department stores, chain
stores and mass market retailers under licensed brands, our own
proprietary brands and the private labels of our customers.

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 projected. 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 publish revised forward-looking statements
to reflect events or circumstances after the date hereof or to reflect
the occurrences of unanticipated events. Readers are urged to review and
consider carefully the various disclosures made by the Company in its
Form 10-K and other Securities and Exchange Commission filings, which
advise interested parties of certain factors that affect the Company’s
business. Risks and uncertainties that could cause actual results to
differ materially from those anticipated in our forward looking
statements include, but are not limited to, the following: there is
doubt about our ability to continue as a going concern due to the June
3, 2016 maturity date of our credit facility, potentially insufficient
liquidity, our history of losses, our stockholders’ deficit and our
auditor issuing a going concern opinion for the year ended December 31,
2014.

Contacts

Company Contact:
Benjamin C. Yogel, 561-409-0890
Lead
Director
Hampshire Group
byogel@mrccapital.com

or
Investor Contact:
The Equity Group Inc.
Fred
Buonocore, 212-836-9607
Senior Vice President
fbuonocore@equityny.com