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HANOVER DIRECT AND SEARS SHOP AT HOME SERVICES ENTER MULTI-CATALOG LICENSE AGREEMENT

 WEEHAWKEN, N.J., Jan. 10 /PRNewswire/ -- Hanover Ventures, Inc., a subsidiary of Hanover Direct, Inc. (AMEX: HNV) and Sears Shop At Home Services, Inc. have entered an agreement for Hanover to produce specialty catalogs for more than 24 million Sears customers.
 The new specialty catalogs will be mailed to Sears customers' homes this month. The specialty catalogs will include Show Place, featuring bed and bathroom accessories; Great Kitchens, offering kitchen accessories and table-top appliances; and Beautiful Style, with "after 5" women's apparel in sizes and 14 and larger.
 Sears chose Hanover as a licensee because of its success in marketing and merchandising its proprietary catalogs, according to Vachel Pennebaker, head of Sears Shop At Home Services. Hanover's proprietary catalogs include "Domestications," the largest specialty home textile catalog in the country, and "Colonial Garden Kitchens," a leading kitchen catalog.
 "The alliance of Hanover and Sears expertise creates exceptional efficiencies in serving the growing shop-at-home customer segment. We will be using existing buying staff, computer systems, wharehousing and fulfillment operations to serve the Sears customer," said Jack E. Rosenfeld, president and chief executive officer of Hanover Direct. Mr. Rosenfeld added that the two companies are planning additional specialty catalogs.
 Under the terms of the agreement, Sears Shop At Home Services may purchase up to 7 million shares of Hanover common stock in 1999, provided certain sales and earnings targets are met. The shares represent approximately 10% of Hanover Direct shares currently outstanding. The purchase price for the shares is $10.57 per share. Hanover Direct will file a report on Form 8-K with the Securities and Exchange Commission that will, among other things, describe the terms under which Sears Shop At Home is entitled to purchase the shares.
 Hanover Ventures, Inc. is a subsidiary of Hanover Direct, Inc., one of the largest specialty direct retailing companies in the United States, publishing 14 catalogs in the apparel, home furnishings and gift areas. Hanover's titles include "Gump's," the leading marketer of upscale gifts and the legendary San Francisco retailer; "The Company Store," upscale direct marketer of down comforters and other down products; "Tweeds," the well-known, European-inspired women's fashion catalog; "Tapestry," featuring home accessories for today's lifestyle; and "Hanover House," Hanover's oldest catalog and a leader in the direct retailing of gifts and novelty items. Hanover Direct is headquartered in Weehawken.
 -0- 1/10/94
 /CONTACT: Michael P. Sherman, executive vice president, 201-319-3403, Linda S. Heinberg, director-investor relations, 201-319-3491, both of Hanover, or Davis Weinstock II of Clark & Weinstock, Inc., 212-953-2550/
 (HNV)


CO: Hanover Ventures, Inc.; Hanover Direct, Inc.; Sears Shop At Home
 Services, Inc. ST: New Jersey IN: REA SU: LIC


LG -- NY016 -- 0416 01/10/94 08:44 EST
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Publication:PR Newswire
Date:Jan 10, 1994
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