Hanover Direct Announces Notice of Potential Delisting From American Stock Exchange

Hanover Direct Announces Notice of Potential Delisting From
American Stock Exchange 


EDGEWATER, N.J., Dec. 13  /PRNewswire-FirstCall/ -- Hanover Direct, Inc.
(AMEX:HNV) today announced that it received a further letter from the American
Stock Exchange (the "Exchange") dated December 9, 2004 notifying it that it has
failed to satisfy an additional continued listing standard. Specifically, the
Company has yet to file its Quarterly Report on Form 10-Q for the fiscal
quarter ended September 25, 2004 which is a condition for the Company's
continued listing on the Exchange, as required by Sections 234 and 1101 of the
Company Guide, and is a material violation of its listing agreement with the
Exchange.  Therefore, pursuant to Section 1003(d) of the Company Guide, the
Exchange is authorized to suspend and, unless prompt corrective action is
taken, remove the Company's securities from the Exchange. The Exchange advised
that if the Company is not in compliance with the aforementioned filing
requirements by December 31, 2004, the Exchange staff will initiate delisting
proceedings as appropriate.  In addition, should the Company regain compliance
with the filing requirements prior to December 31, 2004, the Exchange staff
will review such filing to determine whether the Company is making progress
consistent with the plan. Upon completion of its review, the Exchange staff may
take action including the initiation of delisting proceedings.  The Company may
appeal a staff determination to initiate delisting proceedings in accordance
with Section 1010 of the Company Guide.

As previously reported, on November 17, 2004, the Company announced that the
Audit Committee of the Board of Directors of the Company is investigating two
financial statement matters previously disclosed by the Company and other
accounting-related matters with the assistance of independent outside counsel.
The Company does not believe such investigation will be completed by December
31, 2004 and has so advised the Exchange. The Company understands that the
Audit Committee may receive at least a preliminary report by mid-January, 2005
and cannot predict the outcome of that report or any additional adjustments to
its financial statements that may be necessitated thereby.  However, the
Company intends to file its Quarterly Report on Form 10-Q for the fiscal
quarter ended September 25, 2004 as promptly as practicable following the
conclusion of the investigation.

There can be no assurance that the Company will be able to maintain the listing
of its Common Stock on the American Stock Exchange.

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 (http://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
http://www.hanoverdirect.com/. 

DATASOURCE: Hanover Direct, Inc.



CONTACT:  Charles E. Blue, S.V.P. & Chief Financial Officer of Hanover

Direct, Inc., [phone]; or Rich Tauberman of MWW Group,

[phone], for Hanover Direct, Inc.



Web site:  http://www.hanoverdirect.com/ 

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