I-Behavior Announces Hanover Direct as Charter Member in Online Database Co-op

Business Wire, April 4, 2000

Business Editors

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--April 4, 2000

I-Behavior Inc., a company that provides marketing data and information-based services to businesses involved in e-commerce, announced Hanover Direct Inc. (AMEX: HNV) as an anchor tenant of its co-operative database, a list of opt-in consumer names that will consolidate online and offline purchase information to serve as the basis for analysis and targeting.

As an anchor tenant, Hanover Direct will be providing I-Behavior's database with a valuable and vast data warehouse from the company's catalog and e-commerce Web site portfolio of home fashions, apparel, general merchandise and gift brands. Hanover's market leading brands include Domestications, The Company Store, Improvements, Silhouettes, International Male and Gump's. In turn, Hanover Direct will receive equity in I-Behavior.

The recently launched I-Behavior will help companies to leverage their marketing dollars when acquiring and retaining online customers. I-Behavior's methods are based on the proven direct marketing principle that past behavior is the single best predictor of future purchase and response behavior.

"Through our co-operative database, Hanover Direct will have the opportunity to target new consumers who are most likely to purchase their products. This added information will significantly improve what was previously available to Hanover Direct," said Lynn Wunderman, president and chief executive officer of I-Behavior Inc. "In addition, Hanover Direct will be adding key information to our database."

I-Behavior offers valuable tools for businesses involved in e-commerce, allowing them to better understand high-value, high-potential consumers, what motivates them to purchase, and how to most efficiently reach the desired target.

"Hanover Direct is looking to serve its online consumers with the same targeting efficiency as we have with our offline consumers," said Rakesh K. Kaul, president and chief executive officer of Hanover Direct, Inc. "I-Behavior's database of online buyers will help us to more efficiently identify potential consumers, converting them into loyal purchasers of our brands."

I-Behavior is committed to using marketing data in a way that respects consumer privacy. Information assembled will only be used to target consumers who have given prior permission for the limited, proper use of their names. Individual consumer information, such as spending levels or the nature of past purchases, will not be released to other marketers, and the company will not use click-stream data or track Web sites that a consumer visits.

"Respecting the privacy of every consumer is important to Hanover Direct," said Dick Hoffman, president and chief operating officer of Hanover Brands, Inc., "and we know that as a marketing data company, I-Behavior is sensitive to those issues. Through their positive opt-in policy we are confident that they will provide us only with lists of individuals who have agreed to receive our information via e-mail."

Lester Wunderman, one of the great innovators of direct marketing, serves as I-Behavior's Chairman. He also is Chairman Emeritus and founder of Wunderman Cato Johnson, now known as Impiric, the world's leading global direct marketing advertising agency.

I-Behavior's database is supported by other services tailored to the needs of online marketers such as database consulting and management, analytical services and a data lab, which is a provider of strategic consulting, behavioral research and product development services. Hanover Direct, Inc. 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. Hanover Brands, Inc., the Company's business-to-consumer subsidiary, is comprised of the Company's catalog and Web site portfolio of home fashions, apparel and gift brands. erizon, Inc., the Company's business-to-business subsidiary, is a leading end-to-end technology solutions provider for e-commerce customers. Information on Hanover Direct, including each of its subsidiaries, can be accessed on the Internet at www.hanoverdirect.com.

Headquartered in White Plains, NY, with offices in San Francisco, CA, I-Behavior Inc. is a privately held company. For more information on the company, please call 800.579.1950 or visit their Web site at www.i-behavior.com.