Keystone to provide comprehensive fulfillment services for Womenshands.com, Oxygen’s Web site featuring hand-made, unique crafts made by women from all over the world

Hanover Direct, Inc. (AMEX: HNV) announced today that its subsidiary, Keystone Internet Services, has signed a multi-year agreement to be the exclusive provider of e-commerce services for Oxygen Media’s new Web site, Womenshands (www.womenshands.com), a showcase for unique, handcrafted, works by women from around the world. Keystone will provide all e-commerce operations for the site.

"We are very excited about working with Oxygen Media and its extremely talented creators on Womenshands," said Rakesh K. Kaul, President and CEO of Hanover Direct, Inc. "It will be a valued addition to Keystone’s client portfolio and is a prime example of Keystone’s readiness and desire to work with innovators and leaders towards the goal of becoming the premier e-commerce services provider."

"One of the most exciting things about the Internet is its ability to create connections," stated Lisa Gersh Hall, Chief Operating Officer of Oxygen Media. "Womenshands will allow us to connect our visitors with unique and talented artisans around the world – creating a global marketplace for unique handmade crafts and a rich community of women supporting other women artisans. We are pleased to be partnering with Keystone – they have a history of exceptional customer service and a reputation for developing innovative solutions. We look forward to working with them."

Richard M. Metzler, President of Keystone Internet Services, Inc., said, "Our agreement with Oxygen Media demonstrates the true versatility of Keystone’s services and the value we provide to companies wishing to expand into e-commerce. We are providing Oxygen Media and Womenshands with a ‘one stop shopping solution’ where the flexibility, scalability and expandability of Keystone will be utilized to supply customers of Womenshands with a superior level of service."

Under the terms of the two-year contract, Keystone will provide Womenshands with a complete end-to-end service package including:

• receipt and processing of Internet orders
• acting as a customer service center
• storing and distributing merchandise, and
• billing services

About womenshands and Oxygen Media
An Internet e-commerce showcase for unique works by women, womenshands harnesses the power of interactive technology to connect visitors with extraordinary women and their creative work. Introducing women to artisans who sculpt, weave, solder and carve, womenshands fosters a rich community. Supporting and encouraging women’s economic opportunities through education and e-commerce, womenshands highlights products that are created by women in traditional and modern ways – work from individual women as well as from tribal groups, cooperatives, political organizations and independent entrepreneurs. womenshands is executive produced by Kathy Hammer.

Oxygen Media is an integrated media brand that superserves modern women by combining the best qualities of the Internet and cable television. Founded in 1998 by Geraldine Laybourne, Marcy Carsey, Tom Werner, Caryn Mandabach and Oprah Winfrey, Oxygen consists of a growing network of 14 popular Web sites located at www.oxygen.com and a 24-hour cable network.

About Hanover Direct, Inc. and Keystone Internet Services
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.

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