Hanover Direct Subsidiary, Keystone Internet Services, Signs Multi-Year Agreement With eZiba.com
Keystone to Provide Comprehensive Fulfillment and Call Center Services for Leading Online Retailer of Handcrafted Goods

WEEHAWKEN, NJ – July 12, 2000 – Hanover Direct, Inc. (AMEX: HNV) and eZiba.com, Inc. announced today that eZiba.com has entered into a contract with Keystone Internet Services, Hanover’s e-commerce services provider. Keystone will provide fulfillment, call center, networking alliances and data management services for eZiba.com (www.eziba.com), a leading online retailer of handcrafted products from around the world.

Under the terms of the agreement, Keystone will provide a comprehensive end-to-end services package from networking alliances to customer call-center services to storing and distributing of the merchandise to data management services. eZiba.com will occupy a designated area of Keystone’s 276,000 square-foot state-of-the-art warehouse facility in Hanover, PA in order to consolidate inventories in a central location and to more effectively and efficiently process orders and shipping.

eZiba.com, a premier online source for world crafts, offers a wide array of products made by artisans from around the world. The product offering--available through an online catalog and themed auctions--ranges from home furnishings, accessories, and apparel to art and artifacts, gifts and toys. eZiba.com’s products are also offered to Amazon.com’s 20 million customers. eZiba.com accepts orders by phone or mail as well as via the Internet.

"Our agreement with eZiba.com, a leading provider of gifts, home furnishing and arts, demonstrates the range and level of services Keystone offers to its customers and delivers to their customer base," stated Rakesh K. Kaul, President and Chief Executive Officer of Hanover Direct, Inc.

"eZiba is excited to be partnering with Keystone as our fulfillment solution," said Bill Miller, Chief Executive Officer of eZiba.com. "The quality of its staff and proven expertise, coupled with eZiba’s commitment to providing a great online shopping experience, will enable us to deliver the highest level of service to our customers."

"We are confident that Keystone can provide the wide range of services, including the ability to handle specialized orders and provide state-of-the-art customer service, needed by the unique merchandise mix offered by eZiba.com," added Frank DiMaria, President of Keystone Internet Services.

Keystone 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: Camdens.com; Oxygen Media; Fogdog Sports; The National Geographic Society; United Retail Group; www.mercata.com; KBkids.com; and The Dress Barn, Inc.

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.

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.

About Camdens, Inc.
Camdens is the leading e-commerce and services company delivering end-to-end executive gift, reward, recognition and incentive solutions to Fortune 5000 companies. The Company combines a business-to-business focus and innovative technology with a strong commitment to outstanding merchandise and customer service. The result is a highly customized, efficient and scalable enterprise solution that enables corporations to manage and control all of their corporate gifting through a single point of contact. In addition to simplifying and unifying corporate gift procurement, Camdens gives corporate customers a multitude of back end reporting features that help deliver discipline and control to the corporate gift process.

Camdens launched its service in September 1999. The company is headquartered in White Plains, NY.

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