WEEHAWKEN, NJ, November 17, 1998 - Hanover Direct, Inc. (AMEX: HNV) today announced that Lynn Gray has been named General Merchandise Manager for Kitchen & Home, effective immediately.

In this position, Ms. Gray will be responsible for leading the development of the Kitchen & Home catalog business, building it into a strong home fashion and entertainment brand. This will include creatively enhancing the brand's lifestyle image, expanding the product development and building strategic vendor partnerships for the catalog. She will report to Jeff Potts, President-Home Fashions, Upscale Brands.

Ms. Gray comes to Hanover after sixteen years at Crate and Barrel where she served as a driving force in the development of the retailer's tabletop and home decorating categories. Ms. Gray has also consulted on a global basis for companies such as the UK-based The Conran Shop, providing services in marketing and product development, optimizing the merchandise mix, and developing licensing/distribution strategies.

"Lynn brings to Kitchen & Home a body of experience and skills invaluable to our efforts. Her innovative approach to new product development, creative merchandising and establishment of vendor relationships will be vital in the development of the brand's offer, personality and lifestyle image," said Mr. Potts. "Lynn will drive our campaign to be number one in this important market segment."

Hanover Direct, Inc. President and Chief Executive Officer Rakesh K. Kaul added, "We are delighted to have a gifted merchant with such a strong track record join our management team. Our family of strong, quality brands enables us to create unique shopping experiences geared to the needs of our customer, centered around distinctive proprietary products. We feel confident that bringing Lynn's extraordinary leadership skills to Kitchen & Home will enable us to transform this brand into a true market leader. Her past successes will serve as an inspiration to our entire organization."

Hanover Direct, Inc. (AMEX: HNV) is a leading, specialty direct marketer with a diverse branded portfolio of home fashions, general merchandise, women's and men's apparel and gift catalogs and proprietary products delivered via direct mail and electronic commerce platforms. Its branded portfolio of catalogs includes: Domestications and Colonial Garden Kitchens (Home Fashions - Mid Market brands); The Company Store and Kitchen & Home (Home Fashions - Upscale brands); Improvements and The Safety Zone (General Merchandise brands); Silhouettes and Tweeds (Women's Apparel brands); International Male, Austad's and Undergear (Men's Apparel brands); and Gump's By Mail (Gift brands). The Company owns Gump's, a retail store based in San Francisco, and recently launched Keystone Fulfillment Inc., offering third party fulfillment and proprietary electronic commerce services. Information on all of Hanover Direct's retail titles can be accessed on the Internet individually by name.

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

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