Hanover Direct CEO Announces Turiya Home Fashions During Home Textiles Keynote Address

Rakesh K. Kaul, President and CEO of Hanover Direct, Inc., (AMEX: HNV) speaking to a gathering of almost 200 home textiles executives, announced Turiya, the Company's new premium home fashions brand targeting the luxury market. The Turiya brand, positioned as the ultimate in luxurious home furnishings, reinforces the Company's greater awareness of the lifestyle of the upscale consumer. It will launch in September 1999.

"We have targeted a very special customer, one who truly believes in the home as one's sanctuary. Turiya, inspired by the Sanskrit word describing the state of ultimate harmony, lets our customer go beyond the realm of the ordinary, with some of the most extraordinary products rarely available from a single source. Turiya's merchandise offering will be sourced from around the globe, and will capture the best quality textiles, designs and products available representing the ultimate in the home furnishings industry. We believe our new brand is well positioned for the holiday millennium season and will be well received by this growing segment of the population," Kaul stated.

During the same address Kaul cited the Internet as the greatest challenge and opportunity facing the home fashions industry in the future.

"The Internet is the dominant technology we face today, and the next three years will be critical in defining its market leaders. Regardless of the extent of your participation online, business models must be developed today to realize its maximum potential. We have found home fashion consumers to be receptive to shopping on-line at all price levels. Having identified the Internet as our greatest sales and earnings opportunity, Hanover Direct is positioned to deliver the promise of e-commerce both to our end consumers and to other retailers and name brand manufacturers wanting to engage in e-commerce via the one-stop outsourcing services we offer through Keystone Fulfillment," stated Kaul.

Mr. Kaul's comments were part of an address to industry executives attending Context 2020; a conference on the future of the home textiles industry sponsored by Home Textiles Today, a Cahners publication.

The Turiya catalog joins Hanover's highly successful home fashions market leaders, The Company Store and Domestications. Its offering is comprised of a combination of products manufactured exclusively for Turiya, as well as select nationally known luxury brands and a group of key designers, some new and growing in importance. For the first time, Scandia Down, one of the highest quality down and feather-filled sleep products and bed linens in the market today, will be available through direct marketing channels. Scandia Down, owned by Hanover Direct, is currently sold exclusively in only 37 licensed retail boutiques across the U.S. Turiya will feature the introduction of new designers to the U.S. such as Kelly Hoppen, a winner of the Andrew Martin Interior Designer of the Year Award in England. The Kelly Hoppen line, mixing textures with Eastern and Western cultures to create a personalized home environment, includes bedroom ensembles and a variety of glass, wood and ceramic accessories, candles and home fragrances. Turiya will also be the first catalog to offer Ralph Lauren White Label, a luxury home fashions line of opulent and timeless classics in jacquard, boucle, and cashmere, by the renowned designer, Ralph Lauren.

Turiya will provide its customers with a unique level of service designed to match the quality of the merchandise. Complimentary shipping, white glove delivery of furniture, a well trained, dedicated, customer and 'designer' consultative staff who will provide everything from swatches to 'no-questions-asked' customizing are all planned. Most purchases will be shipped in a distinctive, gift presentation. Its products will include sheets made of cottons, silks and Italian linens with Queen size prices ranging from $120 to $700. Bed blankets in cotton, wool, silk and cashmere will range in price from $100 to $1000. And, perhaps the ultimate in luxury, hand made eider down comforters with retail prices exceeding $4000.

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.

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