Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number: 3235-0287
Expires: January 31, 2005
Estimated average burden hours per response... 0.5

(Print or Type Responses)
1. Name and Address of Reporting Person *
STROME STEPHEN
   2. Issuer Name and Ticker or Trading Symbol
HANDLEMAN CO /MI/ [HDL] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chairman of the Board and CEO
(Last)
(First)
(Middle)
500 KIRTS BOULEVARD		 3. Date of Earliest Transaction (Month/Day/Year)
03/01/2005
(Street)

TROY, MI 48084		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common stock one cent par value 03/01/2005   M   60,000 A $ 12.219 256,474 (1) D  
Common stock one cent par value 03/01/2005   F   42,754 (2) D (2) $ 20.805 213,720 D  
Common stock one cent par value 03/01/2005   S   1,100 D $ 20.449 212,620 D  
Common stock one cent par value 03/01/2005   S   200 D $ 20.519 212,420 D  
Common stock one cent par value 03/01/2005   S   400 D $ 20.539 212,020 D  
Common stock one cent par value 03/01/2005   S   3,200 D $ 20.549 208,820 D  
Common stock one cent par value 03/01/2005   S   1,100 D $ 20.599 207,720 D  
Common stock one cent par value 03/01/2005   S   500 D $ 20.609 207,220 D  
Common stock one cent par value 03/01/2005   S   1,500 D $ 20.619 205,720 D  
Common stock one cent par value 03/01/2005   S   1,200 D $ 20.639 204,520 D  
Common stock one cent par value 03/01/2005   S   1,000 D $ 20.649 203,520 D  
Common stock one cent par value 03/01/2005   S   900 D $ 20.689 202,620 D  
Common stock one cent par value 03/01/2005   S   100 D $ 20.719 202,520 D  
Common stock one cent par value 03/01/2005   S   100 D $ 20.729 202,420 D  
Common stock one cent par value 03/01/2005   S   1,500 D $ 20.759 200,920 D  
Common stock one cent par value 03/01/2005   S   500 D $ 20.769 200,420 D  
Common stock one cent par value 03/01/2005   S   900 D $ 20.779 199,520 D  
Common stock one cent par value 03/01/2005   S   500 D $ 20.799 199,020 D  
Common stock one cent par value 03/01/2005   S   100 D $ 20.809 198,920 D  
Common stock one cent par value 03/01/2005   S   300 D $ 20.849 198,620 D  
Common stock one cent par value 03/01/2005   S   900 D $ 20.899 197,720 D  
Common stock one cent par value               2,112 (3) I By 401(k) Plan

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1474 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee stock option (right to buy) $ 12.219 03/01/2005   M     60,000   (4) 06/01/2008 Common stock one cent par value 60,000 $ 0 0 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
STROME STEPHEN
500 KIRTS BOULEVARD
TROY, MI 48084		   X     Chairman of the Board and CEO  

Signatures

 Stephen Strome by Kenneth P. Kartje Attorney-In-Fact   03/02/2005
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Includes 396 shares of Handleman Company common stock which the reporting person acquired through the Handleman Company Employee Stock Purchase Plan between 12/09/2004 and 03/01/2005.
(2) Payment of the exercise price and tax liability on the 60,000 options exercised on 03/01/2005 by withholding 42,754 shares of common stock incident to the exercise of the options issued in accordance with rule 16b-3.
(3) Between 12/09/2004 and 03/01/2005 the reporting person acquired 84 shares of Handleman Company common stock under the Handleman Company 401(k) Plan. The information in this report is based on a 401(k) Plan report dated 03/01/2005.
(4) Fifty percent of the shares were exercisable on or after 06/02/1999; One hundred percent of the shares were exercisable 06/02/2000.
 
Remarks:
Exhibit List ------- Exhibit 24 Power of Attorney

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.