EDGEWATER, N.J. -- AT&T announced today it has won a two-year, $2 million dollar contract to provide Hanover Direct Inc. (AMEX: HNV) an integrated networking solution linking 14 company locations across the United States, including contact centers in Hanover, Pa., and La Crosse, Wis.

Hanover Direct's commerce operations include its catalog and web site portfolio of home fashions, apparel and gift categories. The company's business-to-business services consist of its third party, end-to-end, distribution, logistics, telemarketing and e-care fulfillment operations.

AT&T's wide-area networking (WAN) solution will help the company offer customers a first class Internet shopping experience, enhance profitability and reduce costs. It provides a standardized communications platform, delivering secure high-speed Internet connectivity and supporting applications including order entry, fulfillment and customer service.

"AT&T's solution helps us realize our goal of migrating more business to the Web," said Michael Contino, chief operating officer for Hanover Direct. "Our customers increasingly want to do business online, and with AT&T we're able to expand capabilities at the same time we aggressively control costs."

The AT&T solution also includes an extensive portfolio of data and voice services, including local, long-distance, toll-free, teleconference and Business Internet Access services. Additionally, to support its business continuity plan, Hanover Direct has collocated servers for the portfolio of web sites in its online retail sales channel -- www.hanoverdirect.com, www.thecompanystore.com, www.domestications.com, www.silhouettes.com, www.internationalmale.com, www.undergear.com and www.keystoneinternet.com -- at AT&T's Internet Data Center (IDC) in Ashburn, Va., where information resident at the company's data center is mirrored.

AT&T is integrating most of Hanover Direct's services through its industry-leading AT&T Business Network (ABN) offer. ABN makes it possible to consolidate communications needs into a single contract, with a single bill and discounts across all services. In addition, through the secure AT&T BusinessDirect^® portal, Hanover Direct gains online access to tools that provide near-real-time reports on network performance and direct access to AT&T's ordering, status, inventory and trouble management systems.

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. The Company's catalog and Internet portfolio of home fashions, apparel and gift brands include Domestications, The Company Store, Company Kids, Silhouettes, International Male, Scandia Down, and Gump's By Mail. The Company owns Gump's, a retail store based in San Francisco. Each brand can be accessed on the Internet individually by name. Keystone Internet Services, LLC (www.keystoneinternet.com), the Company's third party fulfillment operation, also provides the logistical, IT and fulfillment needs of the Company's catalogs and web sites. Information on Hanover Direct, including each of its subsidiaries, can be accessed on the Internet at www.hanoverdirect.com.