Hanover Direct, Inc. (AMEX: HNV) today announced it has signed a commitment letter with Congress Financial Corporation for $82,500,000 in financing to replace its existing credit facilities with Congress and other parties. The commitment is subject to closing documentation anticipated to be completed this month.

“We are very pleased to announce this continued association with Congress Financial Corporation,” stated Rakesh Kaul, President and Chief Executive Officer. “Congress has been a critical supporter of Hanover during our turnaround over the past few years and essential to our transformation. We are enthusiastic about moving ahead with Congress as a strong, dedicated partner.”

The $82,500,000 commitment includes both term and revolving credit facilities, with the latter including a $40,000,000 Letter of Credit facility which will be partially utilized to replace an existing Letter of Credit facility with UBS guaranteed by Richemont Finance S.A., which, as announced on March 2, has provided the Company with a new $25,000,000 unsecured line of credit. “The new Congress facility,” stated Brian Harriss, Senior Vice President and Chief Financial Officer, “consolidates our secured financing with a credit partner whose past and future support has proven invaluable to our development and growth.”

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, general merchandise and gift brands, including Domestications, The Company Store, Turiya, Domestications Kitchen & Garden, Kitchen & Home, Encore, Improvements, Silhouettes 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, Ltd., offering 24/7-web shop services and e-commerce systems development. The erizon subsidiary also services the logistical, IT and fulfillment needs of the Hanover Brands subsidiary. Information on Hanover Direct, including each of its subsidiaries, can be accessed on the Internet at www.hanoverdirect.com.

AGG International, Public Relations
Paula Zwerdling / paula@aggintl.com
Paul Scott / paulscott@aggintl.com
Tel: (212) 869-8230

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