WEEHAWKEN, NJ, July 13, 1999 - Hanover Direct, Inc. (AMEX: HNV) today announced that John DiFrancesco has been named President-Gump's Direct Marketing, effective immediately.

Mr. DiFrancesco will head the Gump's by Mail catalog and the gumps.com e-commerce site. Mr. DiFrancesco's responsibilities include expanding the Gump's brand and offering thru catalog and Internet channels of distribution. He will report to Rakesh K. Kaul, President and CEO of Hanover Direct, Inc.

"We are pleased to have John join our team. His marketing skills and upscale product experience will be invaluable in strengthening Gump's market leadership position as the premier gift brand. In addition, John's background in business planning and development adds valuable resources to Hanover's total Gift Group," said Kaul.

Gump's by Mail and gumps.com are known for their unique collection of distinctive gifts and Asian inspired treasures. The brand's strong on-line presence was recently reinforced by announced alliances with dowjones.com and Della & James.

Mr. DiFrancesco comes to Hanover from Bloomingdale's by Mail where he served as VP, Marketing and Advertising. While there he worked on the development of the Luxury Suite catalog featuring upscale bed and bath products and the Collectibles catalog featuring collectible treasures and unique gifts. Prior to that, he was VP, Marketing for Bedford Fair Industries' apparel catalogs where he was in charge of database, circulation, sales planning and new business. He has also held positions with New Hampton, Inc and Montgomery Ward & Co.

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. The brand marketing division is comprised of the Company's catalog and e-commerce web site portfolio of home fashions, apparel and gift brands, including Domestications, The Company Store, Colonial Garden Kitchens, Kitchen & Home, Improvements, The Safety Zone, Silhouettes, Tweeds, International Male, Austad's, Undergear, and Gump's By Mail. The Company also owns Gump's, a retail store based in San Francisco. Each brand can be accessed on the Internet individually by name. The web services division is comprised of the Company's Internet marketing services group, systems platform, fulfillment and telemarketing and third party fulfillment service vendor, Keystone Fulfillment Inc. (www.keystonefulfillment.com). Information on Hanover Direct, including each of its divisions, can be accessed on the Internet at www.hanoverdirect.com.

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

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