Keystone Internet Services Adds to Executive Talent Base
Tom Donovan hired as Vice President of Western Region Sales; Roshani Narpaul hired as Director of Business Development

WEEHAWKEN, NJ, January 20, 2000 - Richard M. Metzler, President of Keystone Internet Services, a subsidiary of Hanover Direct, Inc. (AMEX: HNV), today announced that it has hired Tom Donovan as Vice President of Western Region Sales and Roshani Napaul as Director of Business Development, both effective immediately.

Mr. Donovan will be responsible for the development of strategic partnerships and client sales for all areas west of the Mississippi River as well as building a Western Sales team to further solidify Keystone's future expansion plans in the months ahead. Mr. Donovan, who will report to Frank DiMaria, Senior Vice President, Sales and Marketing, will be headquartered in Irvine, CA. Ms. Narpaul will be responsible for the development of value-added products and services to be used in approaching the e-commerce industry. In addition, she will assist in the positioning of Keystone in the marketplace as competition intensifies. Ms. Narpaul, reporting to Metzler, will be based at the Weehawken, NJ corporate headquarters.

"The addition of Tom Donovan to the Keystone team and the expertise that he brings with him will help Keystone further establish itself as a major e-commerce and fulfillment player on the West Coast," said Metzler. "Donovan's experience will allow us to create and implement solutions that will assist companies wishing to integrate their global supply chains with their e-commerce initiatives."

Metzler continued, "Roshani Narpaul brings with her the unique background and experience that will assist Keystone in creating and implementing plans to keep it competitive in the burgeoning e-commerce world. Both Donovan and Narpaul will augment and expand Keystone's already talented executive base."

Tom Donovan comes to Keystone from P & O Nedlloyd, a Global Ocean Cargo Carrier and a division of Princess Cruises, where he was responsible for directing the development of client relationships and managing the west coast sales team during a significant expansion in the transpacific trade for P & O. Donovan also worked with American Presidents Line/APC and the Hub Group where he also managed relationships with international clients and built customized logistics solutions to meet their supply chain demands.

Roshani Narpaul joins Keystone from Fingerhut Companies, Inc., a mail order catalog company headquartered in Minnesota. At Fingerhut, she headed the marketing and promotional efforts and was an integral part of the creation of Fingerhut Business Services, Inc., a Fingerhut subsidiary. Ms. Narpaul also worked at General Mills where she held several financial and marketing positions.

Keystone, launched in 1998, provides easy-to-install, e-commerce marketing solutions services to companies wanting to enter into this channel of distribution. Its unique, multi-channel, multi-brand systems platform has the versatility and flexibility to handle a wide range of product categories in a 24/7 service mode. Its roster currently includes: Fogdog Sports, a leading online retailer of sporting goods; The National Geographic Society; United Retail Group; www.mercata.com, launched by Mercata, Inc., a privately held company with funding from Vulcan Ventures, Inc.; KBkids.com, an internet joint venture between BrainPlay.com and Consolidated Stores Corporation; and The Dress Barn, Inc., a national chain of women's fashion specialty retail stores now entering new direct marketing channels of distribution. Keystone is also the third party fulfillment services vendor Excite exclusively promotes to others wanting to participate in its shopping channel.

In addition, on the 'front-end', Keystone can provide the logistical services required by e-commerce companies such as telemarketing, order processing, credit card transaction processing, customer database management and systems programming and interface support. On the 'back-end', it offers a comprehensive range of services including fulfillment, order management, inventory management, and facility management. Through its association with the Hanover Direct portfolio of catalogs and associated web sites, as well as a growing roster of third-party clients, Keystone has obtained expertise in a broad range of product categories such as home fashions and home improvements, men's and women's apparel, and gifts.

Hanover Direct, Inc. (AMEX: HNV), and its business units, provide quality, branded merchandise through a portfolio of catalogs and e-commerce platforms to consumers, as well as a comprehensive range of Internet, e-commerce, and fulfillment services to businesses. Hanover Brands, Inc. is comprised of the Company's catalog and e-commerce web site portfolio of home fashions, apparel and gift brands, including Domestications, The Company Store, Turiya, Domestications Kitchen & Garden, Kitchen & Home, Encore, Improvements, The Safety Zone, Silhouettes, Tweeds, International Male, Undergear, and Gump's By Mail. Hanover Direct is the exclusive distributor of the Compagnie de la Chine brand in North America; the Company owns Gump's, a retail store based in San Francisco; and the Company has a majority equity stake in Always In Style®;. Each brand can be accessed on the Internet individually by name. Erizon, Inc. is comprised of Keystone Internet Services, Inc.
(www.keystoneinternet.com), the Company's third party, end-to-end, fulfillment, logistics and e-care provider, and Desius, LLC, the Company's joint venture with RS Software India, Limited, offering 24/7-web shop services and e-commerce systems development. The division also services the logistical, IT and fulfillment needs of the Hanover Brands division. Information on Hanover Direct, including each of its subsidiaries, can be accessed on the Internet at www.hanoverdirect.com.  

CONTACT:
AGG International, Public Relations
Paula Zwerdling
Managing Director
(212) 869-8230

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