Hanover Direct and InfoSpace Form Strategic Alliance

Hanover Direct, Inc. (AMEX: HNV) and InfoSpace, Inc. (NASDAQ: INSP) today announced that they have entered into an agreement that will further enhance Hanover’s online presence and the services offered by InfoSpace to its users. InfoSpace will offer and promote proprietary merchandise from each of the 13 online brands in the Hanover Brands, Inc. portfolio, such as Domestications, The Company Store, Silhouettes, International Male and Improvements, across InfoSpace’s extensive affiliate client network of wireless devices and Web sites.

InfoSpace and Keystone Internet Services, Inc. will also be working together to drive new merchants to use InfoSpace’s commerce services and to offer InfoSpace’s current network of more than 300,000 merchants the fulfillment and logistics services provided by Keystone.

"InfoSpace is an undisputed leader in providing the most unique and comprehensive suite of merchant services that are offered to the millions of users that will purchase goods through wireless devices or on Web sites," stated Rakesh K. Kaul, President and CEO of Hanover Direct, Inc. "Through Keystone Internet Services, InfoSpace will now be able to offer proven, reliable fulfillment and logistics services to its current partners and brand name manufacturers who are looking to harness the power and potential of the Internet."

This agreement will allow us to offer some of the most sought after merchandise in the industry from Hanover’s popular brands,” said Naveen Jain, Chairman and CEO of InfoSpace, Inc. “Our single-click shopping will make it easy for our users to purchase the brand name products directly from their cellular phones or their PCs.

InfoSpace is the leading provider of information and commerce infrastructure services to wireless devices, merchants and Web sites. It seamlessly integrates products and merchandising to be offered through its single-click shopping both on wireless devices and the Internet.

Hanover Brands, Inc. consists of 13 distinct brands each offering proprietary merchandise and products. Each brand is fully web enabled incorporating the state-of-the-art in online shopping and e-care and occupies the top space in its respective category. Hanover’s unique business model, which strategically integrates print, telephone and the Internet, affords the strongest foundation in today’s emerging world of e-commerce.

Keystone, launched in 1998, provides easy-to-install, e-commerce marketing and operational solutions 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: Beauty.com; Oxygen Media; Fogdog Sports; The National Geographic Society; United Retail Group; Mercata, Inc.; KBkids.com; and The Dress Barn, Inc. Keystone is also the third party fulfillment services vendor Excite exclusively promotes to others wanting to participate in its shopping channel.

About InfoSpace, Inc.
InfoSpace is a leading global Internet information infrastructure services company. InfoSpace provides infrastructure services to wireless devices, merchants and Web sites. The Company’s affiliates include a network of wireless and other non-PC devices including PCs, cellular phones, pagers, screen telephones, television set-top boxes, online kiosks, and personal digital assistants. These include relationships with AT&T Wireless, Vodafone, GTE, USWest, Intel, Ericsson, Nokia, NeoPoint, Sprint, Mitsui, Lucent and Acer America. InfoSpace’s affiliate network also consists of more than 2,100 Web sites that include AOL, Microsoft, Disney/InfoSeek’s GO Network, NBC’s Snap, Lycos, go2net Inc., DoubleClick, Dow Jones (The Wall Street Journal Interactive Edition) and ABC LocalNet, among others.

About Hanover Direct, Inc.
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.

CONTACT:

Hanover Direct, Inc.
Brian C. Harriss
Sr. VP – Chief Financial Officer
Tel: (201) 272-3224

Porter, LeVay & Rose, Inc., Investor Relations
Michael Porter
Tel: (212) 564-4700

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

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