Postal Service Recognizes Hanover Direct, Inc. With Partnership For Progress Award

WEEHAWKEN, NJ and ANAHEIM, CA, September 11, 2000 – Postmaster General William J. Henderson today recognized Hanover Direct, Inc. (AMEX: HNV) with its Partnership for Progress Award – the most prestigious award the Postal Service can present to customers. The award, recognizing those individuals working at companies dedicated to building a closer working relationship between the U.S. Postal Service and its customers, was presented to Rakesh K. Kaul, President and Chief Executive Officer of Hanover Direct, Inc. at the National Postal Forum being held in Anaheim, CA on September 10-13, 2000.

Hanover Brands, Inc., the company’s business-to-consumer merchandise subsidiary, is a leading direct marketer of lifestyle merchandise categories such as home fashions, men’s and women’s apparel, problem-solving home improvements, and gift-giving. Its market leading brands include The Company Store, Domestications, Gump’s, Improvements and Silhouettes. Hanover Brands distributes more than 235 million catalogs each year to 25 million customers targeted to lifestyle communities. Each of Hanover’s catalogs has its own Internet presence that is promoted via direct mail. Internet sales approached $33 million in 1999, a fourfold increase over the prior year.

Keystone Internet Services, the Company’s third-party e-commerce services provider, has also successfully positioned itself as a leader in the high-growth niche of providing comprehensive end-to-end solutions, logistics, telemarketing, distribution and fulfillment services to other companies wanting to do business on the Internet. As a result, Hanover Direct ships more than seven million packages a year to consumers from four fulfillment facilities located in Virginia, Pennsylvania, Wisconsin, and Arkansas.

The company ships more than 95 percent of this volume using the Postal Service’s Express Mail, Priority Mail, and Standard Mail package services, while also taking advantage of Parcel Select and using consolidators to make its Bulk Mail Center drop shipments. Keystone Internet Services also offers its clients a full menu of Postal Service products and services, including Delivery Confirmation, to meet all levels of time sensitive and cost sensitive in-home delivery.

Attended by more than 7,000 people, the National Postal Forum is the mailing industry’s premier educational and networking event for mailing industry professionals to help them keep pace with changes in the mailing industry.

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 and gift brands, including Domestications, The Company Store, Company Kids, Turiya, Domestications Kitchen & Garden, Kitchen & Home, Encore, Improvements, The Safety Zone, Silhouettes, International Male, Undergear, Scandia Down, 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, LLC. 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 subsidiary also services the logistical, IT and fulfillment needs of the Hanover Brands, Inc. 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

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

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