HAMPSHIRE GROUP, LIMITED AND SUBSIDIARIES
                  STATEMENT RE COMPUTATION OF INCOME PER SHARE
                      (in thousands, except per share data)


                                      Three Months Ended      Nine Months Ended
                                      ------------------      -----------------
                                   Sept. 26,     Sept. 27,  Sept. 26,  Sept. 27,
                                      1998         1997       1998        1997
                                   ---------     ---------  ---------  ---------
                                        (unaudited)              (unaudited)
                                                            
Weighted average number of                                   
  common and common equivalent 
  shares outstanding:               4,138        3,856      4,127       3,857
 
Net income (loss)                    $663       $5,111    ($1,295)     $4,615
Less-Preferred dividend 
  requirements                        -             42        -           128
                                    -----       ------     ------      ------
Net income (loss) applicable to 
  common stock                       $663       $5,069    ($1,295)     $4,487
                                     ====       ======     ======      ======
Net income (loss) per share-basic   $0.16        $1.31     ($0.31)      $1.16
                                    =====        =====      =====       =====

- -------------------------------------------------------------------------------

Weighted average number of common 
  and common equivalent shares 
  outstanding per above             4,138        3,856     4,127       3,857

Additional shares assumed to be 
  outstanding from the exercise 
  of options and warrants 
  (computed using the treasury 
   stock method)                      328          250       -           258

Assumed conversion of preferred 
  stock                               -            318       -           353
                                    -----        -----     -----       -----
  Total common shares-diluted       4,466        4,424     4,127       4,469
                                    =====        =====     =====       =====
                                
Net income (loss) applicable 
  to common stock                    $663       $5,069   ($1,295)     $4,487
Plus-Preferred dividend requirement    -            42       -           128
                                     ----       ------    ------      ------
Net income (loss)                    $663       $5,111   ($1,295)     $4,615
                                     ====       ======    ======      ======
                                
Net income (loss) per share-diluted $0.15        $1.16    ($0.31)      $1.03
                                    =====        =====     =====       =====