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Hanover Direct Announces Conclusion of Independent Investigation Regarding Restatements Resignation of Chief Financial Officer

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The Company is finishing the preparation of the restatements of its
financial statements for the fiscal years ended December 25, 1999, December
30, 2000, December 29, 2001, December 28, 2002 and December 27, 2003 and the
fiscal quarters ended March 29, 2003, June 28, 2003, September 27, 2003, March
27, 2004 and June 26, 2004.

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Garten, the Company's Chief Executive Officer, was
appointed as the Company's acting Chief Financial Officer until a replacement
Chief Financial Officer is appointed by the Board of Directors.

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The Company
anticipates that a new Chief Financial Officer will be appointed shortly.

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EDGEWATER, N. The Company intends to continue to cooperate with the SEC in connection
with its informal inquiry concerning the Company's financial results and
financial reporting.com.

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The Museum offers three stories of more than 65
vintage, classic, muscle and concept vehicles interspersed with interactive
displays and historical exhibits.m. - 6 p. (Pink Sheets: HNVD ) 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.

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From there
NASCAR, drag racing and, ultimately, Vipers running at LeMans, were part of
the Dodge image.
Admission for children five and younger is free and group rates are available. Tuesday - Saturday and noon - 6 p., Hanover Direct, Inc.

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Chrysler Museum is located at Featherstone and Squirrel
Roads and is accessible from I-75 at exit 78."
The Museum is open 10 a.

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Blue, the Company's Chief Financial
Officer, resigned.

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chryslerheritage.com or call
888 -456-1924 for further information.hanoverdirect.

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Walter P. Chrysler Museum's 'Dodge Legends' Exhibit Celebrates the All-New Charger's Bold Heritage

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(Pink Sheets: HNVD) announced that the independent outside counsel appointed
by the Audit Committee of the Board of Directors to investigate matters
surrounding the previously disclosed restatements of the Company's financial
statements and other accounting -related matters had concluded its
investigation and delivered its report to the Audit Committee.

The Company is also completing its financial
statements and Form 10-Q for the fiscal quarter ended September 25, 2004 and
its financial statements and Form 10-K for the fiscal year ended December 25,
2004.

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The Museum also features a 125-seat movie
theater highlighting three continuously running short films and a gift shop
brimming with exclusive and hard-to-find scale models and collectibles .m.
Effective March 8, 2005, Charles E. Wayne P. The Company's catalog and
Internet portfolio of home fashions, apparel and gift brands include
Domestications, The Company Store, Company Kids , Silhouettes, International
Male, Undergear and Scandia Down.

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The Company intends to work closely with its outside auditors to
finalize these financial statements.

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Dodge's
suddenly sporty image led to its first Indianapolis 500 pace car. The Audit Committee, again with the
assistance of independent outside counsel, is in the process of formulating
recommendations to the Company and the Board of Directors concerning potential
improvements in the Company's internal controls and procedures for financial
reporting, and the Board of Directors is committed to ensuring that such
improvements are implemented in a timely manner.

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com), the Company's third party fulfillment
operation , also provides the logistical, IT and fulfillment needs of the
Company's catalogs and web sites.

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At this time, the Company does not believe that it will be in a position
to file its Form 10-K for the fiscal year ended December 25, 2004 on a timely
basis.

S.

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Each brand can be accessed on the Internet
individually by name.

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keystoneinternet.

The trial of Lizzie Borden, for killing her parents, and her acquittal, spawned one of the great murder mysteries in U.

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, dubbed the "Red Ram" -- also became available. Chrysler Museum is on DaimlerChrysler's
Auburn Hills, Mich. complex.
There is no additional charge for "Dodge Legends.

About Hanover Direct, Inc.
Hanover Direct , Inc. Information on Hanover Direct, including
each of its subsidiaries, can be accessed on the Internet at
http://www.

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The 55,000 square foot Walter P. The Audit
Committee, with the assistance of independent outside counsel, delivered its
report to the Board of Directors.

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AUBURN HILLS, Mich. Soon Dodge
was selling its own version of the Chrysler 300, the D-500.
The Walter P.
Museum admission is $6 for adults and $3 for seniors and children 6 - 12.
Sunday.
Visit the Museum's Web site at http://www. Keystone Internet Services, LLC
(http://www.

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